We are not asking for any money or donations.
We are asking only that you pass on this plan to friends and neighbors.
Although it is possible to poke holes in anything, the foundation of this plan is sound, which is why it will quickly turn the economy around, promote prosperity for the coming decades, and eliminate the deficit. But because the purpose of this plan is to save the American economy, if any politician, government leader, business leader, or anyone in the media has a better plan, send it to us and we will post it right up front on our website for everyone to see.
Most Americans are making less than they did five years ago. This plan will help compensate for lower wages and encourage people to work hard and save to purchase a home they can afford. It will raise the living standards of Americans.
immediately – in 30 to 90 days. This plan can and should be implemented immediately, because the policies now in place have failed to turn the housing market around or to create sufficient jobs. But the plan should pass through Congress with no attachments – no pork-barrel add-ons that give money to special interest groups or states.
If we do not, we see another 5 or more years of slow economic growth. We see people getting poorer, money harder to come by, and a continued lowering of Americans’ standard of living.
It would be sad to watch other countries implement this plan while we do nothing. And we believe there are other countries that will.
We first published a similar plan on December 9, 2008 in USA Today. It should have been acted on then. If it had, we believe that today:
* Unemployment rate would be less than 5% (not 9.1%).
* House prices would not have fallen in 2009, 2010 and 2011. In fact, we would have seen gains of 10% or more during those years.
* Dow would be above 24,000, not just over 11,000.
* The US debt would be less than $10 trillion, not today’s $15 trillion, and it would be paid off in another 10-15 years, which means there would be no US debt to drag down future generations of Americans.
We will be publishing this article in 25 major metropolitan newspapers in the following areas:
San Francisco, CA
San Diego, CA
Los Angeles, CA
Fort Myers, FL
Fort Lauderdale, FL
New York, NY
The description of this plan is not copyrighted. Anyone, including any magazine, news- paper, or media outlet has per- mission to publish all or part of this plan as well as any or all of the copy on the web site RemortgageAmerica.com.
All financially qualified US citizens, not just those in immediate danger of
default, would be able to finance a new or existing primary residence,
with a $500,000 lifetime limit... read more
Government programs have had a tremendous impact on big business. But the “trickle down” effect has not worked. Implementing this 1% mortgage rate for the people adds a “trickle up” boost to the economy because people will be able to spend and save more, and it is consumers who are the real job creators. The decline in net worth, wealth, and America’s standard of living will be reversed. Most important, the dignity and self-esteem of the American people that has been lost will be regained... read more
When the US Government refinances a 4% mortgage at 1% and you pay only the interest for two years, it will cut the monthly payment on a $180,000 loan from $859 to $150 a month. That is an extra $709 a month! An extra $8,512 a year! For two years. Money you can save or spend. (Minus some additional taxes due to a smaller interest deduction.) After two years, if you have a 30 year mortgage at a 1% fixed rate, instead of 4%, your monthly payment on a $180,000 loan is $614 instead of $859. That is an extra $2,940 to save or spend every year for the length of the mortgage... read more
It will stop people from walking away from “underwater” mortgages by making their mortgage payments less than rent, which will prevent many foreclosures and turn the housing market around. We believe this plan will increase home values, which will offset some of the financial losses experienced during the past years and help stop foreclosures... read more
This is a government loan program — not an increase in government spending — which means the money will be repaid. Plus, the economic expansion it generates will increase federal and state revenues while decreasing federal and state spending on unemployment and welfare. And taxpayers will have a smaller interest deduction, because they will pay less interest on their mortgages. Annual deficits will turn into surpluses of $1 trillion to $2 trillion a year, which will eliminate the $15 trillion debt in 10 to 15 years if all the extra money is put toward the debt and not spent by Washington... read more
The American people who helped build this country deserve and need a plan like this — a plan that will help them directly while also stimulating economic prosperity, just like the GI Bill after World War II that gave returning veterans the opportunity to purchase a home at a low mortgage rate and virtually no down payment. In fact, the GI Bill is the model for this plan, because it was the GI Bill, not World War II, that ended the Great Depression and created the greatest era of expansion and prosperity in American history. Today, as then, the purpose of a plan focused on people and housing is not only to end a long-lasting recession, but to create prosperity that will last for decades... read more
There are almost 100 million housing units in America, with an average value of $200,000. The total value of existing mortgages is estimated to be about $10 trillion, although falling prices have reduced the market value to about $8 trillion. If all of those mortgages were quickly rewritten, the government would have to come up with $10 trillion. However, this plan will bring many more people into the housing market, so that when all is said and done we expect it could require as much as $14 trillion, which is no more than the current debt. And remember, this is not government spending, it is money used to make loans that will be paid back and that will soak up virtually all houses in foreclosure. If you want to see more numbers read more
One answer is from the Federal Reserve that has been lending money to banks at 0% for the last few years. No one can say that past policies failed to help the financial industry. Now it is time for government to help the people first. If large banks can receive loans at 0%, why not mortgage loans for people at 1%... read more
We first published this idea on December 9, 2008 when we paid for a full-page in USA TODAY. Since then, we have made some adjustments. At the time, we believed it was the best way to turn the economy around and avoid a long-lasting recession or a possible depression. Now, three years later, we believe it may be the only way to jump start the American economy, save homes, create jobs, and increase incomes. This is a win-win plan that puts the American people first. It is good for all Americans, including large and small businesses, government, and Wall Street... read more
Vote now on the Remortgage America Plan so that everyone — people, politicians and the news media — can see what you think. Whether you vote for the plan or against it, whether you have a positive or negative opinion, it is important that you post it. Even if you simply post a Yes or No, it will help.
If you would like to leave a comment, we will read what you have to say. It is also important for you to pass this plan on to friends and neighbors. Send e-mails to your friends in other states and tell them to come to the website. They can then pass it on to others. And they can pass it on... read more
Contributor and spokesperson: Dennis F. Paulaha, Ph.D. Economics
If you have a suggestion that can add to this plan, we want to hear from you.
One suggestion we heard was to limit interest deductions on houses in order to increase tax revenues. Instead of being able to deduct interest for up to a $1 million mortgage, which is the current limit, reduce the interest deduction limit to a $500,000 mortgage. The idea is that anyone owning a house valued at more than half a million dollars should be able to give up some interest deductions and pay a little more taxes to help the country out.
We will post the best ideas we receive on our web site so you can follow the development of this plan. Leave your suggestions here
For media, business leaders, or government people who want to contact Dr. Paulaha, Leave Message Here