Bush To Announce 5 Year Rate Freeze For Mortgages

Tomorrow, President Bush will outline a plan to freeze rates for 5 years for subprime mortgage loans that “originated between January 1, 2005, and July 31, 2007, with rates that are due to reset between January 1 of next year and June or July of 2010,” reports Reuters.

There’s not a lot of information about the plan yet—we’ll have to wait until the President’s announcement tomorrow—but according to Reuters,

The plan is aimed at borrowers who can afford their existing rates and who are current on their payments, but who would face default when the rate resets higher.

“Bush to outline mortgage plan on Thursday: source” [Reuters]
(Photo: Getty)