Thanks to a few social media giants, President Barack Obama's mortgage refinance proposal has gone viral.
Using the Twitter and Google Plus hashtag, #MyRefi, and an infographic, people are sharing the facts of the president's proposal as quickly as their fingers can type.
The plan is to simplify the mortgage refinancing process and "cut through the red tape" that currently keeps responsible homeowners from taking advantage of lower rates and lower monthly payments, according to whitehouse.gov.
The proposal has three parts:
- Expanding and improving the Home Affordable Refinance Program, or HARP.
- Providing homeowners with incentives to take shorter-term loans, which will help them rebuild equity faster.
- Taking the refinancing idea in HARP and making it available for borrowers who don't have mortgages backed by government-sponsored enterprises or loans insured by the Federal Housing Administration.
Nicknamed HARP 3.0, the proposal is designed specifically for underwater homeowners. It would mean banks could no longer lock them out of refinancing because they owe more than what their home is worth.
Obama's proposal would also establish a quick, hassle-free process for homeowners who are current on mortgage payments and want to refinance.
But, how will HARP 3.0 help the economy?
According to the #MyRefi infographic, if the average homeowner is allowed to refinance, he or she could save $3,000 a year. That means more money to save for future investments, such as a child's college education, or more money to splurge on that new hot rod you've been eyeing.
It's your money, honey.
Bankrate's refinance calculator can help you figure out how much you would save.
Crissinda Ponder is a reporting intern for Bankrate. Follow her on Twitter @CrissiPonder.