What the Housing Stimulus Means to Homeowners

Posted at 9:39 AM, Feb. 20, 2009

There is plenty of controversy surrounding the latest plan from President Obama.  In a nutshell, his goal is to stop the impending slide of homevalues due to forclosures and reign in the current housing stock.  By doing so, we increase demand and credit with flow once again. 

Many of these changes include allowing Freddic Mac and Feddie Mae to back loans at more than an 80% loan to value ratio when they already own them.  This helps those current homeowners looking to get out of loans with bad terms or refinance at a lower interest rate.  This has been pretty much impossible up until now given homes have dropped in value.  Read the whole story here.