In the past month, there has been a drastic increase in the number of homeowners applying for mortgage refinancing. A lot of homeowners are attracted to refinancing their home now due to the Obama stimulus plan and low mortgage rates all across the country. Others are hoping to hold out for a bit more and see if the interest rates get even lower in a few more months. Still some are digging in and not considering a refinance. Whatever you choose to do, make sure before refinancing a home mortgage to determine if you would even save money with a mortgage refinance. Also make sure your finances are in order and see if you would even qualify for a mortgage refinance. Lately, as a response for the loose lending practices that got us into this housing mess, lenders have tightened up borrowing and require much more of potential borrowers now. So even though the refinance applications are at near all time highs, the actual number of approved requests is actually less than in prior years. Now, with President Obamas housing stimulus plan homeowners may have a easier time getting into a new mortgage. The plan is to help homeowners who have been responsible and have been making their payments on time and in full, refinance into a new mortgage with a lower rate. Ideally, this should mean less foreclosures and saving money every month due to having lower interest payments. Property values would rise as homes are bought and sold without so much fear from the seller or buyer. The extra money can be used to pay down other bills, do home repairs or improvements, pay off a car loan, or for whatever you wish. This should help stimulate the economy and no matter what will help millions of struggling homeowners. Obamas stimulus plan also calls for easier loan modifications for homeowners who owe more than their home is worth. This is especially helpful for homeowners who have been hardest hit from property and home values nosediving. Overall this stimulus plan Obama provides us should be the ticket to help start turning the economy around. Millions of homes will not be foreclosed on, and even more homeowners will actually see monthly savings through refinancing their current mortgage. Banks will start getting their mortgage payments on time and start to lend out money with more confidence and with better terms and conditions. Millions of homeowners are looking for some type of relief and this housing stimulus package from Obama will provide just that for a lot of people. If you have not done so yet, start getting your financial papers in order and research potential mortgage lenders now. Once you find a lender you like who can give you a good quote get it written down on paper. With that quote you have on paper, shop it around to other potential lenders and often they will meet or beat the quote you have brought them.

-M Petrone

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