Real Estate Industry Backs Refinancing Act

Washington, DC, May 25, 2012 -- The real estate industry tried to convince a a Senate committee on Thursday to endorse a plan that would lower interest rates for homeowners with mortgages owned by Fannie Mae and Freddie Mac.

The Responsible Homeowner Refinancing Act of 2012 would benefit underwater homeowners.

Under the plan, homeowners could take advantage of current market mortgage interest rates, which are between about 3.875% and 4.5% versus the 5% or 6% that some homeowners now pay.

The bill would go further than the existing Home Affordable Refinance Program.

Borrowers who would become eligible for refinancing under the proposal would save on average between $2,500 and $3,000 annually.