Obama Budget – How Much Will It Cost? Will I Save?
With the Obama Budget being debated in Washington many are asking how much will it cost and will I save? After securing a $787 billion stimulus package it will be very hard to win over Washington with a budget that will put the country in a $1.75 trillion deficit which is FOUR times what it was last year. Two of the main areas that President Obama wants to address are health care and energy.
The numbers for the Obama Budget are ENORMOUS! Obama plans to spend $3.6 trillion in 2010 and $1.2 trillion of it will be borrowed. Hasn’t this country gotten in enough trouble borrowing money with the mortgage crisis? The idea of irresponsible borrowing of money today to pay it back tomorrow is what started the subprime mess. To make matters even worse, the economy is spiralling downward. There was a 6.2% contraction in the last three months of 2008 and it could get even worse in 2009.
Will the Obama budget save me any money? Your savings will be determined by your tax bracket. President Obama is proposing that the wealthiest 5 percent of Americans will pay $1 trillion in higher taxes over the next ten years while everyone else will see tax cuts. Higher income Americans would also pay more for healthcare benefits. So, in essence, you are likely to see take cuts, but no, Obama will not be making your mortgage payment.
The proposal seeks to cut payments for Medicare and Medicaid which will cause insurance companies, home health care and drug manufactures to take a hit. To make this issue even more interesting, many of these areas are powerful lobbies in Washington.
Obama is also pushing to reduce greenhouse gases and raise funds to pursue clean-fuel technologies. Wind and solar power will greatly benefit from these actions. This proposal is known as the cap and trade and is sure to cause some fighting in Washington, especially when it comes to different regions of America.
Obama is attacking some issues he deems important but Washington thinks there are bigger issues on the table, namely the housing market. Obama makes a strong push to save the average American money on their taxes, but the main issue remains trying to find a bottom in the housing and real estate market. Ultimately, a stronger economy will do that, but is the Obama budget going to create a stronger economy for America?
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Obama Mortgage Bailout Plan Benefits You?
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Obama Stimulus Check – You Will Get This through Lower Taxes
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Foreclosure Prevention Program: Am I Eligible?
President Obama Mortgage Bailout Plan – How Much Will it Save Me?
We are getting closer and closer to seeing the effects of the Obama Mortgage Bailout Plan, March 4th. Many of you may be asking, “how much will it save me?” Well, that is determined by how much you make and how much your current mortgage payment is. If you have a mortgage payment that has been a struggle to make over the last year and your income has not increased, it is likely that the Mortgage Bailout Plan will save you a significant amount of money.
With the new Obama Mortgage Bailout Plan your mortgage payment will only be 31% of your income. To put that into numbers, here is an example. If your mortgage payment is currenly $1700 a month and your monthly income is $4300 before taxes, you will only be expected to pay 31% of $4300 which is $1333 a month. You will save $367 a month and $4404 a year! To calculate how much your new mortgage payment will be just multiply your monthly income by .31. This is a rough estimate, but should be very close to your new mortgage payment.
If your mortgage payment is less than 31% of your current income, you will not see an immediate savings. You will have the oppotunity to save in the long run by refinancing. Mortgage rates are at historical lows and many borrowers do not have access to these rates because lenders are being so strict in their lending practices. The Obama Mortgage Bailout Plan is giving lenders incentives to be more lenient with their lending practices so more Americans will have the opportunity to refinance at lower rates.
So, if you have done well financially and stayed ahead with your mortgage payments, apply to refinance and see what offers you get. You could get as much as a whole percentage point dropped from your current mortgage rate. This would save you MUCH more than the $4404 a year that the previous example illustrated.
Overall, the Obama Mortgage Bailout Plan should save most Americans some money in one way or another. If you do not own a home, this is the time to buy as the government is urging you to make your first home purchase by giving you an $8,000 tax credit and many incentives to move into that first home. For more information on saving money on your mortgage stay tuned to the Church of Cowherd.