President Barack Obama announced today his plan to help the struggling housing market. There are three main components to his plan.

1) Refinancing, he wants to make it possible for people who make their payments on time but are paying a high interest rate and would otherwise not be able to refinance because they do not have enough equity in their home.

2) Loan Modification, those who are at risk of foreclosure would have more opportunities to have their loan modified, the government will offer special incentives to lenders who alter the terms on loans for borrowers, making the process more rewarding to the lender as well as the borrower.

3) Credit assurance, try to assure there is plenty of credit available for mortgages by giving $200 billion of additional backing to Fannie Mae and Freddie Mac.