Obama Plans on mortgages

“If lenders and homebuyers work together, and the lender agrees to offer rates that the borrower can afford, we’ll make up part of the gap between what the old payments were and what the new payments will be.” said President Obama today speaking of his plan changes that by removing restriction that restrict Fannie Mae and Freddie Mac to guarantee refinancing for mortgages valued at more than 80 percent of the home’s worth,so that Fannie Mae and Freddie Mac can refinance mortgages they already own or guarantee. According to Obama this will allow millions of families stuck with loans at a higher rate to refinance, and the estimated cost to taxpayers would be roughly zero; while Fannie and Freddie would receive less money in payments, this would be balanced out by a reduction in defaults and foreclosures.