Why be responsible?

President Obama announced his plan for mortgage relief today. I'm highly conflicted. On one level, I don't want people to lose their homes, nor do I want the housing market to go even further in the crapper.  On another level, a lot of the people the plan will help maybe didn't make the smartest decisions in the first place.  

The plan allows those whose mortages are owned by Freddie and Fannie (and other who get bailout money) to refinance at or below current interest rates (about 5.25%), with no cost to the homeowner.  In addition, those who are underwater also can also get their principal reduced.  The overall goal is to reduce mortage payments to less than 31% of gross income.  The treasury said that interest rates could be reduced to as low at 2% to get to the 31% target.

Great, sign me up! Ohhhh, waiiiitttt.  We took out a mortage on a home we could afford, at a fixed interest rate, and our mortgage payment is less than 31% of our gross income.  Silly us.  Nope, if we want to refi, we have to go about it the old fashioned way and pay our closing costs.  Even then, the best we could do are the market-value interest rates (don't get me wrong, I'd love to have the extra $100 a month).  Where are the sweet refi deals for those of us who make our payments each month, on time, and bought a little less house so we could afford it if/when we lived on a single income?  Oh, right, we're not the ones foreclosing.