Poll: Is another refinance effort what we really need?by Tim Manni
“To help responsible home owners, we’re going to work with federal housing agencies to help more people refinance their mortgages at interest rates that are now near 4 percent,” Obama said during his speech. Such a move would “put more than $2,000 a year in a family’s pocketbook and give a lift to an economy still burdened by the drop in housing prices,” he added.
While I didn’t expect to hear any details from the president regarding this refinance plan, I was actually surprised to hear that some experts are saying there are a lot of other things we need besides another refinance effort.
Homeowners who can’t sell
“That’s not the bold stroke that I want,” Mark Vitner, a senior economist at Wells Fargo, told HousingWire after the speech. “It’s not just refinance; we want people to be able to sell their homes.”
All those foreclosures
“To get the economy moving forward, we simply must address the millions of people in danger of losing their homes to foreclosure,” adds Orson Aguilar, executive director of research group The Greenlining Institute. “This massive shadow inventory is a dead weight on the housing market and the whole economy, and we can’t ignore it.”
Yet still, many are of the opinion that giving homeowners the chance to preserve their homes while lowering their monthly costs can really help make a dent in this economic recovery.
But let’s ask you: what does this country really need?
Cast your vote: