Question for mortgage expert about how to address housing sector.

[kristopher]

How much does it cost to refinance (and buydown if necessary) existing mortgages 2 points if:

The loan to value isn't a factor since values are so hard to actually establish.

The total loan is less than $300,000.

Term is 30 with no prepayment penalty

Credit is above 690 and employment is good.

This is a refinancing proposition where all existing loans are converted to a 30 yr fixed.
This would stimulate a complete review of existing mortgages which could be repackaged after they are refinanced.
The drop in rates would redirect more principle towards paying off the house and allow the homeowners to achieve a position of positive equity much more quickly.
This solidifies the real estate market, slows the slide and helps establish the bottom at a significantly higher level than otherwise would occur.
Bankruptcy process still in place for handling the homes that reduced payments can't save.

The question is, how many mortgages are out there, how much are they on average, and how much do we have to spend to buy all those mortgages down 2%.