Just because mortgage rates are at historic lows doesn’t mean homeowners can qualify to refinance. Most Americans can’t because their credit scores aren’t perfect, their houses have lost value or they’ve lost income.
As a result, tens of millions of Americans have been effectively blocked from saving hundreds of dollars a month by refinancing.
“We would avoid more foreclosures, people would be happier and I think the economy would get a lot better” if everybody could access the low rates, Riccio says.
That’s basically what some economists are proposing — at least for some 30 million Americans. The premise of the idea is that because of the financial crisis, the federal government has already guaranteed 60 percent of existing home mortgages.
For more: http://www.npr.org/2010/11/11/131249862/refinancing-plan-could-face-political-hurdles
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