The plan calls for Fannie Mae and Freddie Mac, now under government control, to modify loans for its customers, which include more than 30 million mortgage holders.
Beginning Dec. 15, the government would reduce interest rates for homeowners who are at least three months behind on their mortgage payments and owe 90 percent or more than their home is worth. The interest rate would be cut so that they don’t have to pay more than 38 percent of their income for housing. Some mortgages also might be extended to 40 years from 30.
Did you get that? Get behind three months on your mortgage and have virtually no equity, and you get a gift thanks to Uncle Sam. You get to have a lower interest rate! And you might even get to lower your payments by stretching your mortgage out to 40 years.
Be responsible, and YOU GET NOTHING. Silly me… Since I bought my house four years ago, I’ve been working to build equity. What a dummy I am. Who knew if I paid as little as possible and skipped three payments, I’d be rewarded for my foolish behavior?