News

WASHINGTON (MarketWatch) -- As many as 9 million Americans can now take advantage of lower mortgage rates and save money by refinancing their home loans, President Barack Obama said Thursday.

Speaking at the beginning of a White House roundtable about housing finance, Obama said with mortgage rates at historic lows, a typical homeowner can now save between $1,600 and $2,000 a year by modifying their mortgages.

According to the latest data compiled by Freddie Mac, the average interest rates charged on 15- and 30-year fixed-rate mortgages remain below 5%. These rates are down by nearly 1% and by 1%, respectively, from year-ago levels. See full story.

"We are at a time where people can really take advantage of this," Obama said.

He said the White House wanted to encourage troubled borrowers and those seeking to save on their monthly payments to see if they're eligible for government-backed mortgage refinancing.

Obama spoke at a meeting with families who he said had taken advantage of low rates brought about by the Federal Reserve and his administration's housing-stimulation plans.

Obama said officials are rolling out additional phases of the administration's program. He said the ones in place now help "responsible folks who have been making their payments" and aren't looking for a handout.

"This allows them to make some changes that will leave money in their pockets and leave them more secure in their homes," Obama said.

He also urged homeowners to beware of scam artists.

"If somebody is asking you for money up front before they help you with your refinancing, it's probably a scam," said Obama.