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The Curious Bag
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<h4 class="dechead">On One Hand: Yes - In Some Situations
President Barack Obama's stimulus plan allows for homeowners that can prove financial hardship to refinance their homes so that their debt-to-income ratio is lowered to 31 percent. To do this, the plan allows for mortgage rate reductions down to two percent. Homeowners whose homes have dropped in value by 15 percent or more are also able to use this stimulus benefit.
On the Other: Not For Everyone
A straight 2 percent mortgage is not available to everyone through the stimulus plan. However, if you want to manually lower your interest rate, many banks will allow you to purchase a reduction in interest rate by paying points on mortgage. This means you can pay the interest charges up front, that the bank would otherwise receive in the long term.
Bottom Line
In theory, a two percent is available to anyone willing to pay points on their mortgage. However, to qualify for President Obama's mortgage refinancing plan, you must be able to prove financial hardship with supporting documentation to back up your claim. A two percent mortgage is as low as the plan will allow, but requires the proper financial hardship to obtain.
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