Obama said Tight for Millions of Refinancing

WASHINGTON - Declaration of "good news" in the midst of an economic collapse, President Barack Obama called Thursday for families to enjoy the almost record low mortgage rates to refinance their home loans. "We are at a time when people can really enjoy this," Obama said, sitting with a handful of owners who have already reduced their bills.

But he also warned people to watch out for scammers, the warning: "If someone asks you for money in advance to help you with your refinancing is probably a scam. "

Rate on mortgages of 30 years was slightly up this week but remain near the lowest level in decades, allowing borrowers credit and stable jobs to save money if they refinance .

The average rate on 30-year fixed-rate mortgage rose to 4.87 percent this week, up from 4.78 percent last week, Freddie Mac said Thursday. This was the lowest in the history of the survey, which dates back to 1971.

The low rates have caused a surge in refinancing activity, with nearly 80 percent of new loan applications from borrowers seeking to refinance. Freddie Mac's sibling company, Fannie Mae, has refinanced $ 77 billion in loans last month, almost double the volume in February.

"The main message we want to convey today is that there are 7 to 9 million people throughout the country that could now be taking advantage of lower mortgage rates," said Obama in a session photos in the Roosevelt Room. "This is money in their pocket."

Foreclosures and defaults continue to break records. A record 5.4 million American homeowners with a mortgage, or almost 12 per cent, at least one month of delay or closure at the end of last year. And nearly half of homeowners with a risk subprime adjustable-rate mortgage are struggling.

Last month, the Obama administration has launched a new plan of $ 75 billion in incentives for the industry to modify mortgages to help borrowers of loans to avoid foreclosure. On Thursday, he encouraged people to benefit from a government website - http://www.makinghomeaffordable.gov - to see how they can help.

In recent weeks, nearly 200,000 homes have been in contact with Bank of America to see if they are eligible to Obama under the refinancing of the administration of new guidelines, "said Vijay Lala, the bank's product management executive. "We have seen tremendous interest."