Barack Obama will be sending welfare checks to people living in million dollar homes.
March 4 (Bloomberg) — The U.S. Treasury released new eligibility guidelines for homeowners seeking federal aid that will allow troubled borrowers to lower their mortgage rate to as low as 2 percent.
The rules released today require applicants to fully document their income with pay stubs and tax returns, and sign an affidavit attesting to â€œfinancial hardship,â€ the Treasury said. People living in their homes who have an unpaid principal balance of as much as $729,750 can participate.
So say someone lives in one of these million dollar (well, technically $729,750) homes. Mothly interest payments on a 30-year, 7% mortgage are $4,855.04. But as I understand Obama’s plan, it will loser those payments to $2,697.30.
Under Obama’s plan, some people living in million dollar homes will receive the equivalent of $2200 a month in welfare checks.