Obama Proposes Expansion of ReFi Plan to Most Homeowners

President Obama proposed a new program during his State of the Union address Tuesday to allow homeowners with privately held mortgages to refinance at lower interest rates. The plan would expand his recent effort to help troubled homeowners reduce their mortgage payments. The proposed legislation could give "every responsible homeowner" the ability to take advantage of low interest rates.

The President expressed concern for the

millions of innocent Americans who’ve seen their home values decline. And while government can’t fix the problem on its own, responsible homeowners shouldn’t have to sit and wait for the housing market to hit bottom to get some relief.

The program would cover both loans issued by government-controlled mortgage giants Fannie Mae and Freddie Mac as well as private mortgage lenders. Officials estimate an average annual saving for homeowners of $3,000. Congress would have to approve it.