You have most likely heard about President Obamas stimulus plan to help over 6 million homeowners modify or refinance their current mortgages. Here is some information you need to know whether you qualify.

More recently, the U.S. Treasury Department outlined the details of the plan and released more information on how this plan will work.

The first part of this plan will help 6 million homeowners who have not been able to refinance their home mortgage due to the vale of their home dropping and they now owe more than 80% of their homes value. Typically, to get a refinance, homeowners had to either bring money to the closing in order to get the 20% equity typically required to refinance, or purchase PMI (Private mortgage insurance) which can be very expensive.

The second part of this plan will help up to 4 million current homeowners modify their existing loans. These are usually borrowers who just for whatever reason can not afford their monthly mortgage payments and will default on their loan if something is not done, while other borrowers are dangerously close to being foreclosed on.

Obamas “Making Home Affordable” plan also provides mortgage lenders and banks with monetary incentives to help there two group of homeowners qualify easier, however, you will need to meet certain requirements. Check around my site for more information.

-M Petrone

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