By: Bob Steinburg
Many Republicans in Congress felt that if mortgage relief had to be given it should be given to all homeowners with mortgages. They proposed lowering all mortgage rates to four percent.
According to a telephone survey conducted last week by Rasmussen, 51 percent of Americans agree with this approach, while 45 percent oppose any federal mortgage subsidy.
If Congress had adopted the Republican plan, the additional money that would have been saved in monthly mortgage payments by reducing existing mortgage rates from an average of six percent to four percent would have been significant. On a $200,000 mortgage, discretionary spendable income would increase by $3000 per year, or $250 per month. On a $100,000 mortgage, the savings would be $1340 per year. In addition, the National Association of Realtors state that for every percentage rate drop in interest, between 350 and 400,000 additional home sales are generated.
(Excerpt) Read more at dailyadvance.com ...
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