In a Q & A format interview with the housing website Zillow, President Obama stated that he could use a refinancing deal on his Chicago home. Um, isn’t that what keeps getting us into trouble Mr. President? The entire reason we had a housing bubble burst is because banks were practically giving away mortgages that Americans couldn’t afford. And now the President is looking to tell people that he too could benefit from refinance and start anew with a 30-year mortgage. According to The Hill:
While touting the administration's housing reform efforts, the president said that he was among the millions of Americans who would enjoy a bit of extra cash if they were able, or willing, to refinance their mortgages.
"I would probably benefit from refinancing right now," he said during a question-and-answer session with the housing website Zillow. "I would save some money."
The president acknowledged that the Obamas have yet to refinance, primarily because "when you're president you have to be a little careful about those transactions."
But also, why is it that the President would even need to refinance? The amount of money that he made both before and now while being president doesn’t afford him the ability to make his monthly payments? But apparently Mr. Obama still owes the bank quite a bit of money for that million dollar home in Chicago.
The president reported on his 2012 financial disclosure forms that he still owed between $500,001 and $1 million on his Chicago home. He reported having a 30-year fixed-rate mortgage, obtained in 2005, that stood at 5.625 percent, still well above current rates available on home mortgages.
The Mortgage Bankers Association reported Tuesday that the average interest rate for 30-year "jumbo" mortgages — mortgages with balances greater than $417,000 — stood at 4.64 percent.
The president pushed Congress in the Q-and-A to pass a plan this fall to help more homeowners refinance their mortgages, streamlining the process and expanding the number of those eligible for a refinancing. The call came as the president ramped up his efforts to push housing reform initiatives, as both parties begin to discuss ways to overhaul the housing finance system.
"Let's not just let a few people refinance. Let's allow everybody who is potentially eligible to go ahead and refinance," he said.
Well it seems that the President isn’t just looking out for the little guys anymore. Talk about being a one percenter!