There are other ideas on the table, but one estimate says homeowner refinancing could save everyone $85 billion per year. It would also help people who weren't able to refinance their debt, "either because they owe more than their houses are now worth or because their credit is tarnished." The plan the administration goes with must ultimately, "plans must help a broad swath of homeowners, stimulate the economy and cost next to nothing." The Times explains why refinancing is likely the way to go. It could even chip away at the federal deficit: 

 

The idea is appealing because it would not necessarily require Congressional action. It also would not tap any of the $45.6 billion in Troubled Asset Relief Funds that was set aside to help struggling homeowners. Only $22.9 billion of that pool has been spent or pledged so far, and fewer than 1.7 million loans have been modified under federal programs. But Andrea Risotto, a Treasury spokeswoman, said whatever was left would be used to reduce the federal deficit.

 

More The Atlantic Wire