Home refinancing

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gonzy's picture
gonzy
Status: Member (Offline)
Joined: May 1 2009
Posts: 6
Home refinancing

I just read an article by Jim Willie that implied the Gov't might be offering a refinancing of all existing mortgages (presumably Freddie and Fannie which constitute a large % of the market) to market rates to "jump start the economy". This certainly sounds like something the Keynsians would dream up the question I have is how could one take advantage of this info i.e. who would benefit?

machinehead's picture
machinehead
Status: Diamond Member (Offline)
Joined: Mar 18 2008
Posts: 1077
Re: Home refinancing

A similar proposal was made by Bill Gross of Pimco -- to refinance ALL non-delinquent government-backed mortgages at a lower rate, such as 4%. His plan is discussed here:

http://www.huffingtonpost.com/2010/08/17/bill-gross-mortgage-refi-_n_685228.html

If refinancing is available on any government-backed mortgage (including Fannie Mae / Freddie Mac), then it would be easy to qualify -- just sign up.

But politically, it seems unlikely. The benefits would go mostly to middle-class homeowners -- nothing for renters or the poor. So it's not very likely to happen, I would guess.

jcorey's picture
jcorey
Status: Member (Offline)
Joined: Sep 23 2009
Posts: 5
Re: Home refinancing

I saw this a while back.  Think this is along the lines of what you may have heard.

http://www.dsnews.com/articles/fha-rolls-out-principal-reducing-refi-pro...

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