The ongoing debt discussions in Congress have finally resulted in the House of Representatives passing a bill that is now headed to Senate. In other financial news, a new report from Freddie Mac revealed that the majority of homeowners who refinanced in the second quarter of 2011 either reduced their mortgage loan amounts or kept them the same.
Senators to Vote on Debt Plan
The House passed a bill on Monday night that will allow for a $2.4 trillion debt ceiling increase with just one day until default. While the debt plan was not a favorite among many lawmakers, it garnered enough support to pass under a 269-161 vote.
In addition to the debt limit increase, the plan cuts $917 billion in spending of closing the deficit by an additional $1.5 trillion.
If the panel comes to a deadlock as lawmakers did over the past few weeks or Congress refuses to accept the plan, a pre-arranged set of spending cuts would kick in.
The bill is now headed to the Senate for a vote today. If passed, President Barack Obama will sign it into law, missing the default deadline by just a few hours.
Homeowners Who Refinanced in Q2 Avoided Higher Debt
A new report released by Freddie Mac revealed that 77 percent of homeowners who refinanced in the second quarter of 2011 either reduced their loan amounts or kept them the same.
Because refinance interest rates are low and have been for some time, homeowners have had a chance to reduce their interest, and in some cases, lower their principle amounts.
As noted by Freddie Mac chief economist, Frank Nothaft, in a recent Wall Street Journal article, “Savvy homeowners are taking advantage of some of the lowest fixed-rates in more than 50 years to lock in interest savings.”
Experts say the time is now to take advantage of the lower interest rates. The historic rates won’t last forever, so it’s better to jump on the savings while you still have a chance.
