In America,the traditional way to finance a home purchase is with a thirty-year, fixed-rate mortgage loan.
VOA: special.2011.01.24
So too with so-called PLUS loans, for which Mr. Obama favors the 10-year Treasury rate plus 3.93% on a fixed-rate loan with no cap, while Mr. Kline wants Uncle Sugar to charge a floating 10-year Treasury rate plus 4.5%, while capping rates at 10.5%.
According to the financial information service Moneyfacts, the average cost of a two-year fixed-rate loan, for someone with a 25% deposit, is currently 4.28%.