Under water homeowners should be able to refinance their mortgage at the current term of their loan (without an appraisal) rather than being forced to go back to a 30 year. Under the current rules, only the banks are benefitting from the refi, b/c they are allowed to just make more money by extending the loan back to 30 years. The homeowner nor the housing market benefits from these types of refi's. By allowing a refi on the remaining term of the loan, the balance will be reduced quicker therefore reducing the gap between the balance of the loan and the market value. This would be one step closer to getting the housing market back on track.
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