Vice President Joe Biden said the Democrats in Washington could allow 12 million additional families to refinance their mortgages if the Republicans would “get out of the way,” something he stressed “won’t cost the government a penny.”
“We helped millions of families modify their mortgages so they can stay in their homes and we helped more than a million refinance their homes saving $3,000 bucks a year, but guess what?” Biden asked the crowd at an Obama campaign rally in Detroit, Mich., Wednesday.
“We can do it for another 12 million if the Republicans would just get out of the way, just get out of the way. Right? Just get out of the way and it won’t cost the government a penny.”
The Obama administration’s mortgage refinance plan was part of the White House’s “We Can’t Wait” for Congress campaign.
“The barrier will be lifted that prohibits responsible homeowners from refinancing if their home values have fallen so low that what they owe on their mortgage is 25 percent higher than the current value of their home,” he said on Oct. 24, 2011.
“If you’ve got a $250,000 mortgage at six percent interest rates, but the value of your home has fallen below $200,000, right now you can’t refinance. You’re ineligible,” Obama explained. (RELATED: Report: Secret Service prepping for Biden to appear at GOP convention
“But that’s going to change. If you meet certain requirements, you will have the chance to refinance at lower rates, which could save you hundreds of dollars a month, and thousands of dollars a year on mortgage payments.”