The good news is that mortgage rates are low - the lowest Americans have seen in a while. The bad news is that many Americans are underwater on their mortgage payments. This means that a large percentage of homeowners owe more on their mortgage than what their homes are worth - a problem that can leave homeowners in a constant struggle to get ahead, a struggle some never win due to foreclosure.

With so many Americans owing more than their homes are worth, refinancing has become a buzz word and a trend. Homeowners are attempting to refinance their home loans at a lower rate in order to break out of the debt spiral. With a low refinance mortgage rate, homeowners have the chance to save money on a monthly basis, making their mortgages easier to afford and reducing the likelihood of foreclosure. Refinancing also makes homes easier to pay off faster. Unfortunately, banks have been hesitant to offer refinancing options to those with upside down home loans and have made it extremely hard to get approved for refinancing options.

However, President Obama's latest mortgage refinance plan seeks to put an end to the banks' moratorium on refinancing for homeowners in need. Under Obama's new plan, homeowners who could not get a refinance mortgage rate through a commercial lender could refinance using an FHA-backed loan. Because the FHA would assume the cost should the homeowner default, the lender would be more likely to offer homeowners the refinance plan.

People who are upside down on their mortgages and who would like a chance at being able to get right-side-up again can benefit from this plan. However, there will be restrictions - and not all homeowners will qualify. Also, it is not clear whether this plan will ever benefit anyone, since it has not yet been signed into law, and political commentators expect a fight in congress, especially since Obama plans to fund the program with a fee imposed on banks. Many are opposed to this, as they feel it would only further damage the economy.

Still, homeowners who are currently paying high mortgage rates should realize that there may be help coming, and they should stay on top of the news so that they know the moment a refinance mortgage rate program is made available to help them with their home loans. They may also want to check into current programs that the FHA and HUD offer for struggling homeowners. Even if a new program is not made available due to legislative problems, homeowners can still try to refinance by shopping around for low rates and different mortgage companies who may want to assume the mortgage at a profit.