President Obama rolls out special deals for various favored constituencies at today’s news conference, his first in three months.
Obama will announce plans to allow people with FHA-insured mortgages to refinance with deals not available on the free market. These deals will save mortgage holders up to $1000 a year.
Military members with mortgages are also getting relief.
Fox News reports: Under the housing plans Obama was to announce Tuesday, FHA-insured borrowers would be able to refinance their loans at half the fee that the FHA currently charges. FHA borrowers who want to refinance now must pay a fee of 1.15 percent of their balance every year. Officials say those fees make refinancing unappealing to many borrowers. The new plan will reduce that charge to 0.55 percent.
With mortgage rates at about 4 percent, the administration estimates a typical FHA borrower with $175,000 still owed on a home could reduce monthly payments to $915 a month and save $100 a month more than the borrower would have under current FHA fees.
Though 2 million to 3 million borrowers would be eligible, the administration official would not speculate how many would actually seek to benefit from the program. The FHA provides mortgage insurance on loans made by FHA-approved lenders throughout the United States and its territories. The loans typically go to homeowners who do not have enough equity to qualify for standard mortgages. It is the largest insurer of mortgages in the world.
Read more: http://www.foxnews.com/politics/2012/03/06/obama-to-hold-1st-news-conference-year-in-middle-super-tuesday/#ixzz1oMPMKh7n
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