Many homeowners stuck at interest rates of 6%, 7%, and even 8% are unable to refinance because of credit scores and/or appraised values.
The proposal from Christopher Mayer, economist and Business School Professor at Columbia University, is to streamline the process to lower interest rates freeing monies to be spent elsewhere in the economy.
This would be for homeowners who are current and in good standing on their mortgages through Fannie Mae or Freddie Mac. They should be able to lower their interest rates regardless of credit score and without the need for an appraisal. Even keep the current loan terms.
- source: npr.org
To rebut the issue that one person's debt is another person's asset,: every mortgage has the stipulation that there are no penalties for early payment.