A radical fix for housing and the economy

It is time to go further than the current discussion and programs to help America's home owners in a meaningful way. Here is one idea, which would cost the public nothing, and put money into people's pockets for years to come.

We need federal legislation to reset every primary home mortgage in the country to a 4 1/2 % interest rate for the balance of the loans.

This would apply to current long-term mortgages, and convert every adjustable rate mortgage to a 30-year term fixed rate. Lenders would have to redo the mortgage papers at no cost to the borrowers.

In addition, no new adjustable rate mortgages would be allowed, and all new mortgages for the next two years, at least, would be at the same 4 1/2 % 30 year interest rate.

Thus, the industry which created the mess would have to absorb some losses of income, but the home owners would have lower monthly payments, and a better chance of staying in their homes. Foreclosures would be much less likely. The housing sector would be stabilized, at last.