Homeowners looking to take advantage of Obamas “Home Affordability Plan” should not wait any longer. Millions of homeowners are eligible with this stimulus plan to save hundreds monthly through refinancing plans that call for a 4.5% fixed rate mortgage. Homeowners are rushing to take advantage and save money every month. Here is how you can too.

The main focus point of this plan is to help homeowners that have been able to keep up with their payments on time for at least the past 12 months. Refinancing or modifying a home mortgage will be easier for homeowners who have been on time due to the government giving incentives to mortgage lenders and banks to help “risky” borrowers stay in their home rather than foreclose or default on their loan. The government will match any costs or expenses inured by lenders who participate, sometimes dollar for dollar. With these incentives, homeowners now will not need the typical 20% equity in their home that was a previous requirement for a refinance or modification. Also, a homeowner may owe more on their mortgage than their home is actually worth, up to 5% more than the homes worth at the maximum. This helps homeowners who have seen their property values plummet due to having bought their home in the middle of he housing boom and soon after having the housing market drop. Another chance homeowners may have is a home loan modification. Homeowners may modify their loan so that they do not have to pay more than 38% of their gross monthly income on their mortgage every month. This is even easier for homeowners who have their mortgages backed by Fannie Mae or Freddie Mac. This will help millions of homeowners save hundreds every month if it is done right. Use patience and do some basic research before making any drastic decision. If you refinance wrong it will cost you a lot of money, and possibly your home. However if you refinance the right way you will undoubtedly save a lot of money, especially with these Obama housing stimulus plans.

-M Petrone

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