With the recent announcement from President Obama and his economic advisors of their “Home Affordability Plan” millions of homeowners can now refinance or modify their current mortgage and save hundreds per month. This stimulus plan is centered around homeowners who are facing defaulting on their mortgage or possible foreclosure on their home.

President Obamas housing stimulus package will help you refinance your current home mortgage.

--Now, you can refinance or modify your current home loan even if you do not have the customary 20% in equity. Thanks to the housing plan from Obama homeowners who owe as much as 105% of their homes worth will be able to more easily refinance their loans. This is also due to mortgage lenders and banks getting government incentives to help struggling homeowners refinance or modify their loans into affordable payments.

--Refinance your current mortgage into a better interest rate. Following the guidelines set by Barack Obama, mortgage lenders will now refinance your home loan into a lower interest rate. This would make the monthly payments lower.

--You may also reap some of the benefits such as waiving late fees or not paying any processing fees.

Some of the other main points of this housing stimulus plan are:
--Their are now grants available for homeowners depending on their individual credit ratings. For the most part, this program is for people who are looking for some short term financial help. These grants are available for home loan repayment.

--Programs for homeowners to modify their current loans have been established and will save homeowners a lot of money. The new plan calls for mortgage modification that allows mortgage payments that are not to exceed 38% of the homeowners total gross monthly income, or GMI.

--Special lines of credit and loan options for first time home buyers and other people who are looking for automobile loans.

--Overall interest rates to be reduced to 5.16% or so from the current 6.5%.

--Free professional mortgage advise for people who can not afford to pay a mortgage counselor from a US Federal appointed HUD officer for problem solving and other mortgage issues.

Refinancing a home mortgage can be a great thing if it is done the right way. However, if it is wrong, it can cost you a lot of money, or even your home. Patience and simple research using the internet will be your best tool in ensuring you get the best deal on your refinance.
-M Petrone

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