Refinancing is available through the government’s Home Affordable Modification Program at rates as low as 2% and for borrowers whose total debt payments — including credit cards and other debts — can be as much as 60% of pre tax income.

The Administration’s recent extension of its program to help homeowners who are under water refinance contains perverse incentives that may just be more attractive to those who have equity — and good credit scores — than to those who don’t.