The Obama economic stimulus: Everybody gets to refinance their house at 4.5%

[jeffrey]

Pollster Frank Luntz asked a large audience at a conference in Washington last week to raise their hands if they had received a government bailout. While they chuckled and rested their hands on their laps, Luntz made an important observation. Bailout money is snowing down in an unprecedented blizzard, and if the moves fail to stimulate the economy, there will be a lot of angry voters.

Perhaps the same realization moved President-elect Barack Obama’s economic advisers to begin considering a bailout for the masses.

If Luntz asks the same question a few months from now, everyone may well lift their hand.

Bloomberg News last week reported that the chairman- designate of the National Economic Council, Lawrence Summers, had been conferring with conservative icon and Columbia Business School Dean Glenn Hubbard about a housing plan Hubbard designed with Columbia colleague Christopher Mayer. Obama’s economic advisers appear to have embraced the proposal, which is already “on a fast track at the Treasury,” according to the story...

Bloomberg.com: Opinion

[ceejay74]

God, that would be nice! If it goes through, I really hope it applies to refis as well; I'm at 5.75%, up from 5.0%, and I don't have enough equity to refi right now. My rate adjusts again November 2009.

My husband's UK mortgage interest rate, which is variable, just went down to 3.99%. Amazing!

[jIM_Ohio]

If this is true and was allowed, I think it would work.

My wife and I talk about this all the time- if our mortgage was removed from the budget, our disposable income would skyrocket. If our payment was reduced (5.75% is our current rate), that difference would become disposable income.

[Goldy1]

I'm all for helping the people but again, I never got in over my head and refinanced at 5.25 a few years ago, and my mortgage is almost paid off (in early 30;s) due to double income no kids (about to change)and not being stupid with my money. Also we made a very modest income as well.

Agian, more stuff not helping me but if it helps others, I guess we all benefit with housing vlaues, but then I am not planning on selling.

[creditcardfree]

I would probably refinance if that were to happen, but then I would continue with the same payment and pay off home early. I wouldn't be spending the extra income in the economy.

[sweeps]

Originally Posted by creditcardfree

I would probably refinance if that were to happen, but then I would continue with the same payment and pay off home early. I wouldn't be spending the extra income in the economy.

Smart move. I'm refinancing now and rolling the remaining amount of my car loan into it, but I'll still be paying as if I still had the original mortgage and car payment.

[Gruntina]

It would make a bigger impact if even those who are upside down on their mortgage were qualified as well.

Some who are upside down on their home are those who also had reasonable mortgage that they can afford but happened to buy the house before the housing bubble burst.

[disneysteve]

Originally Posted by jIM_Ohio

If our payment was reduced (5.75% is our current rate), that difference would become disposable income.

Originally Posted by creditcardfree

I would probably refinance if that were to happen, but then I would continue with the same payment and pay off home early. I wouldn't be spending the extra income in the economy.

I'm with ccf. I'd refi (I'm at 5.875) but we wouldn't go out and spend the extra money. I'd probably split it between paying extra on the loan and boosting other savings. Most likely, we wouldn't spend any of it so it wouldn't do the economy much good. Kind of like that stimulus check. Lots of folks stashed it in savings or used it to pay down debt rather than going out and spending it.