President Explains Refinance Proposal | News

FALLS CHURCH, Va. (WUSA) -- Roughly 1 in 4 homeowners are said to be underwater on their mortgages, which means the home is actually worth less than the loan.

The government has been rolling out programs to help them and the boldest one yet was presented in more detail Wednessday.

In Falls Church, Va.,  President Obama explained his idea to help underwater borrowers refinance their mortgages. The President says the plan would save the average borrower roughly $3,000 a year.

The plan would allow all borrowers to refinance their mortgage, even those whose homes are worth less than their loans.

The cost of the plan: up to $10 billion. It's a cost the President wants large banks to cover with new fees. That idea could face a really tough fight in Congress.