This is from one of our mortgage providers, Mike Castronovo @ www.Castronovo.com. 

Greetings!

 It's not too late to save America. "We the People" have to get our leaders refocused on what made this nation successful in the past.

 Hand-ups, not handouts. Reward those who are struggling to do what's right, not those who have done what's wrong.

 Apparently I'm not alone. Wall Street's message to Washington is clear: "Your plan sucks." 

Want to spur the Housing Market?  

Want to see your portion of $75 Billion in tax dollars spent more wisely? 

Instead of focusing on how to bailout 9 million Americans who bought homes they couldn't afford, let's focus on helping the people who can best help our economy recover. 

THE BETTER PLAN: "30 Year Fixed Mortgages Available at 1.00% BELOW  Market Rates"

 $75 Billion to 9 million American Households = $8,333 per Household. 

Let's say a 30 Year Fixed Mortgage is 5.125% today, and you're wondering  "Should I take advantage of ridiculously low home prices, or should I stay put and just refinance?"

 Most Americans are a little scared to step-up at the moment, and are opting to stay put (see any recent New & Existing Home Sales  statistics). There are multiple scenarios that could push interest rates significantly higher in the next couple years. If someone refinances at 5.125% today, what are = the odds of getting them to buy a new home when rates start climbing back up to 7%, 8%, and 9% or higher? 

Before you tell me, "People still bought homes in the early 80's when = interest rates where 16%.", it was a much different environment. People knew the Fed had slammed on the breaks to halt inflation successfully and that rates were about to start coming down and the market would be taking off as the Fed lowered rates to spur growth (We're out of bullets in that gun right now).

 But what if you took that $75 Billion today and said, "You can refinance at a current rate of 5.125%, or through a government incentive program, you can BUY a new home and receive a fixed rate 1.00% BELOW the current market rate.

 One point typically buys your rate down by 1/4%. So four points can buy it down 1.00%. 

The median home sale price in the US as of earlier this month is a shade over $175,000. Without going into what a down payment should or shouldn't be; and since would cover all homes at every price point, let's say the Median Down Payment is 20%. 

Median Mortgage = $140,000

 4 Points = $5,600

 $75,000,000,000 Could stimulate over 10 Million New Home Sales.

 There are many qualified Buyers sitting on the sidelines WAITING for a reason to buy now.

 "You can refinance at 5.125%, or you can get 4.125% today if you purchase."

 Let's see... Housing is "On Sale", and I can lock in to the "deal of a lifetime" in interest rates... Do you think we would see a lift in housing and subsequently the economy overall? Do you think that kind of new demand would create jobs and reverse the downward spiral we're in? 

That's my idea for Washington. Feel free to pass it on to anyone who might listen.

 Mike