| Credit & Debt | Personal Finance | Economic Crisis | Housing Market | Employment Trends | Expert Insight |
Subscribe  Print 
|
||
More housing measures could be added to stimulusAccording to an article on CNN Money, there are a number of ideas under consideration that could help buyers and existing homeowners alike. For example, the news provider describes a proposal likely to be introduced by the Republicans in the Senate, which would encourage lenders to offer a 30-year fixed-rate home loan with an interest rate of 4 percent. The incentive would come in the form of a guarantee from the federal government, according to an aide of Senate minority leader Mitch McConnell. It might also provide a subsidy, so that the buyer or refinancer would pay no more than 4 percent, even if the mortgage were offered at a higher rate. The government would pay the rest. A second measure on the table is a doubling of the home buyer tax credit, increasing the amount from $7,500 to $15,000. As it stands, the stimulus package includes a one-time credit for new buyers that they do not have to pay back, as long as they do not sell their home for at least three years. The proposed amendment would also open up the credit to all homebuyers, not just those making a first-time purchase. Lawmakers hope that a larger credit could be more persuasive to Americans who are on the fence about whether or not to buy. And what about existing homeowners who are in no position to sell, because they are struggling to meet their mortgage payments? Some lawmakers have said that more foreclosure assistance could be written into the stimulus, but others say a better way to address the problem is by using a portion of the remaining funds from the Troubled Asset Relief Program. President Obama has promised to deliver a new plan for how the government will increase help to homeowners facing foreclosure in the coming weeks.
|
||
