So, the stock market continues to free fall, even after the Federal Government announced that interest rates would stay stable for the next two years.  The current rate is 0%.  Doesn’t get much more stable than that.

So, the government is loaning money out at 0% interest.  Doesn’t that seem like a fundamentally bad move?  I’m no financial genius, but I’ve been promoting this idea for a while and since no one seems to be making any serious movies, let me propose this to the country again.

The 2% Home Mortgage Refi.

These would be government sponsored and only available to those who have NOT missed a payment for the past five years.  Period.  No exceptions.  I am among a small group of homeowners who have been taking it for the team, versus going the quick sale route or just walking away.  Sure I’m under water and have watched the value of the home dropping almost as fast as the Dow Jones. But hear me out.

The government is only getting 0% on their money, when they could get 2% on what they’d loan out.  That puts money in the coffers.  The homeowners that see their payments drop have money to spend, pay off bills and help spend our way out of this mess. The spending triggers lower unemployment and back we return to prosperity.

What’s the worst thing that could happen?  People who have been playing by the rules get a break and the government actually earns interest on their money instead of just giving it away. (Wait…’their’ money?  That’s OUR money)

Nay-sayers, please line up over there and offer the better solution. I can see from here it’s a short line.  Look, it’s something.  It’s a plan.  I originally posted a Facebook page promoting this idea last year, called How About 3% Government Mortgages for Regular Folks?  Look it up, Like it and let’s see if this idea can pick up any momentum.  Or, we can just wait for the politicians to do whatever it is they’re doing.

Tim Hunter