President Bush orders a subprime mortgage rate freeze.

Early this week a buzz has been heard all over the nation that had its start in our nation’s capital of Washington D.C; President George Bush, along with some regarded advisors have devised a plan that intends to save "at risk" home buyers and borrowers from going into default and foreclosure with their property. The plan is structured to be implemented in the near future and the programs primary directive aims at freezing introductory teaser rates on the controversial Option-ARM or Pay Option mortgage program.                                                                                                                                                                                      Over the last few years unqualified home buyers have been enticed by the ARM program but failed to realize the long term ramifications of the program; while the introductory rate of 1% to 2% was often seen as being a slam dunk, many borrowers failed to see that many of these interest rates were only fixed for a small number of years. while many investors made money from this program by capitalizing on a then booming real estate market, others didn't refinance their program or sell when their teaser rate ended. This unfortunate turn of events meant that many borrowers were very over extended in terms of their how much they owed on their property compared to how much they made, it was also not uncommon for some homeowners and borrowers to be upside down on their real estate investment. While the Federal Reserve Chairman Ben Bernacke has made attempts to alleviate pressure by cutting the federal interest rate, President Bush's new plan may make a more direct impact in helping out the borrower by taking the problem head on and helping the problem where it is most needed, by assisting the consumer.