Rate Freeze Agreement
By Mar Celo on Dec 6, 2007 in US News | | |
A plan to freeze interest rates for five years for thousands of struggling homeowners whose mortgages were scheduled to rise in the coming months has been put together by the Bush administration.The proposal will enable mortgage companies to freeze the loans at the lower introductory rates as long as the borrowers did not miss any payments at the lower rate.
Treasury Secretary Henry Paulson explained:
It would freeze introductory “teaser” rates on subprime mortgages, preventing them from resetting to higher rates for five years.
This is the administration’s effort to reduce the tidal wave of foreclosures that has been hiting the nation.
