Refinancing Trouble? HOME Bill Could Help

The HOME bill could help millions of Americans with their mortgage payments
The HOME bill could help millions of Americans with their mortgage payments

Millions of Americans who are now locked out of refinancing because their home is underwater or their credit score is low may finally get a chance to take advantage of the historically low mortgage interest rates. Rep. Dennis Cardoza (D-Calif., pictured at left) reintroduced the HOME (Housing Opportunity and Mortgage Equity) Act to give many more Americans an opportunity to take advantage of today's lower mortgage rates. The reintroduced bill is gaining steam and now has the support of leading economists.

Right now even Fannie Mae and Freddie Mac, who are under the control of the government, are "withholding their best interest rates from potential refinancers whose credit ratings and home equity have eroded in the tough economy," Mark Zandi, chief economist of Moody's Analytics wrote in a Philadelphia Inquirer opinion piece.

He worked with Rep. Cardoza to design the reintroduced HOME Act to solve this problem. Zandi believes this new legislation would help the 14 million homeowners with mortgages that are underwater. Right now many of these homeowner's are locked out of refinancing because they owe more on their home than it is worth.