Obama administration unveiled details of $75 billion foreclosure prevention plan, which proposes a temporary reduction in the interest rate being paid by homeowners with mortgages up to $729,750. The reduction would be as low as 2 percent under the plan and it would be applicable for any area, not just high-cost areas.
The applicability of $729,750 mortgage limit to homes in all market and not just in high-cost areas has surprised analysts, who have expected otherwise. The move will encourage mortgage professionals to help more borrowers, an industry expert opines. Other details of the plan include issues regarding refinancing and financial incentives.