July 18th, 2023 by WCBC Radio

A group of US Senators including Maryland’s Chris Van Hollen had introduced legislation to help first-time, first generation home buyers build equity in their homes much more quickly.  The LIFT Act establishes a program at the Department of Housing and Urban Development to sponsor low fixed rate 20-year mortgages for first time, first generation homebuyers. The US Treasury Department would subsidize the interest rate and origination fees associated with the 20-year mortgages so that the monthly payment would be in line with a 30-year Federal Housing Administration insured mortgage. By allowing borrowers to build equity through their homes at twice the rate of a comparable 30-year load without meaningfully increasing the monthly payment, LIFT will improve the power of home ownership for millions of families.