I want to get everyone's opinion on this. For me I think it is great that so many people will be able to free up their equity and help the economy recover. I figure the average closing cost on a typical loan is $3000, so that is a lot of money that is flowing back to the local communities. What's everyone's input about this statement of the President?
Refinance loans help free up cash, which theoretically gets spent or reinvested, but it can put people at greater risk for foreclosure if their new payment is substantially higher.
I'm torn on the issue; on the one hand I used to be in the mortgage industry, but on the other, part of the reason we're in this financial mess is that we, as individuals, companies, and governments, are over-leveraged.
Hopefully we can get some more real estate buyers, landlords, and rental investors picking up some of the buying slack this summer!