Obama’s Stimulus Plan–4% Refinancing?

If President Obama reduced homeowner’s interest rates to 4%, the lower monthly payments would have a huge impact on the economy. 

This kind of thing seems wrong at first glance.  But with interest rates near 4% anyway, the only thing preventing folks from refinancing is that they owe more on the mortgage than their home is worth.  This across-the-board refinancing removes that unfortunate situation.  If folks still can’t make the payment, they lose the home anyway, right?

I think it’s an election year winner.