Obama highlights refinancing programs

WASHINGTON, April 9 (UPI) -- Low interest rates and expanded eligibility combined to create "extraordinary jumps" in the rate of mortgage refinancings, U.S. President Barack Obama said.

"What you've seen now is rates are as low as they've been since 1971," Obama said Thursday after attending a round-table meeting on housing refinancing. "Three-quarters of the American people get their mortgages through a Fannie Mae- (and) Freddie Mac-qualified loan. And as a consequence of us being able to reduce the interest rates that are available, we have now seen some extraordinary jumps in the rate of mortgage refinancings."

Between 7 million and 9 million homeowners are eligible for lower mortgage rates, Obama said, noting that the administration estimated the average yearly savings could be between $1,600 and $2,000.

Fannie Mae refinanced $77 billion of mortgages in March, the highest volume reported by the Federal National Mortgage Association in one month since 2003, Obama said.

Also, rates on 30-year mortgages dropped to an all-time low of 4.78 percent, he said.

"So we are at a time where people can really take advantage of this," he said, encouraging homeowners to check whether they're eligible for refinancing at MakingHomeAffordable.gov, the government Web site that outlines different refinancing options and includes an eligibility calculator.