Stop the downward spiral of home loss and value drops. Keep people in their homes. This would make it eligible for all homeowners, regardless of financial situations, that are are experiencing negative equity and cannont refinance or for people that are struggling to meet payments. Create a mortgage line with a a flat APR of 5% which is higher than current loans for prime properties but a lower rate than what folks are having trouble refinancing due to current restrictions.
Why is this important?
Create a flat rate for all hoeowners that have negative equity in their homes and high interest rates above 5%. Those who have rates lower would not be impacted. All loans regardless of Fannie Mae or Freddie Mac ownership would be eligible to flat rate their loans to 5% saving money on their housing payments which would slow foreclosures and in turn put money back into homeowners poackets and spending in local economies.
