Aneka Info

Housing Act basically represents a temporary lifeline for mortgage companies Fannie Mae and Freddie Mac and relief for 400 000 houses in distressed mortgages. All in all, there are about 15 billion U.S. dollars in housing tax breaks. Here is the law - in short

Treasury is authorized to spend billions of dollars on mortgage giants Fannie Mae and Freddie Mac if their financial death. Combined, these two companies hold almost half the mortgages in the country, to the tune of 12 trillion U.S. dollars. In return, the government may buy shares in two companies, the Federal Reserve guards were authorized to do so to ensure responsible lending practices are adhered to. Among other provisions, lenders must clearly make the debtor aware of the terms of their mortgages and how much their payments might be.

housing law includes a plan to help up to 400,000 homes to replace their high interest mortgages with affordable government insured loans. success of this program rests on the lenders who should take the loss and reduce your mortgage principal prior to refinancing.

the Federal Housing Administration's planned 300 billion U.S. dollars to secure these loans, although it is predicted that only 68 billion U.S. dollars will be used. Similar to a home loan guarantee original lenders pay fees to the fund, and pay an annual home insurance premiums totaling 1.5 percent, as a buffer in case of loss of income. Despite a lifeguard, it is estimated that 35 percent of the loan will end up in default.

first home buyers will be eligible for a loan amounting to $ 7.500 if they bought the house between 9 April 2008, a first July 2009. $ 500 - $ 1,000 deduction on 2008 property taxes will be available for those who do not itemize their taxes. Also included are 4 billion U.S. dollars to help local governments to purchase and renovate foreclosed properties. That provision was in the White House wanted removed, claiming it helped lenders more than the house.

All of these perks do not come cheap - the new housing law will result in the national debt ceiling was increased from 800 billion U.S. dollars to 10.6 trillion U.S. dollars. Maybe not now, but often someone has to pay for this ...