The President's New Mortgage Plan

Today President Obama released his ideas for a new mortgage plan to help Americans that are under water on their mortgages.

The plan which seems solid to me. Of course I am a homeowner that is underwater so I have a vested interest in this. It is hard to understand how the average person in America would have an issue with these plans.

Earlier the President talked of a plan to allow folks to write down their mortgages. Some folks were concerned because that might well reward those who are not responsible and not reward those that have been. For me personally I did not have a great issue with it. I think that anything that helps people helps the economy which in a round about way should help me.

This new plan to me however has nothing to be controversial. Basically it will allow or could allow 3.5 million homeowners financed through private lenders to refinance with FHA at the current rates as long as their credit rating was above 580 and they were current on their mortgage. These folks would not be financing to lower their payments but to take the savings and apply to give them equity and to lower their term to twenty years. In short it stops the underwater issue for folks. It would be financed via a tax on big banks.

Obama said the banks that were bailed out could now do something to repay America. Republicans will be against this. Romney's answer is to let the market bottom out.

With so many folks underwater it just seems hard to see how this cannot pass and how those against it could not be punished at the polls.

Thinking what it would mean for us and our lives is crazy. It could change our lives.