US President George Bush has unveiled plans to freeze interest rates on sub-prime mortgages to help alleviate the crisis engulfing the United States mortgage arena.
Rising interest rates and irresponsible lending have already led to thousands of Americans defaulting on their mortgage payments, and millions more face the same problem. Bush is to make three options available to US homeowners that need assistance. Firstly, they can have their monthly payments frozen at an introductory rate for five years. Secondly, borrowers can either refinance their mortgage at a lower rate or, thirdly, apply to refinance through the Federal Housing Administration. Around 1.8 million homeowners in the US face repossession because they took out loans with short-term ...
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