President Obamas “Making Home Affordable Plan” is a mortgage refinance and modification plan recently enacted in order to help millions of struggling homeowners having a hard time paying their mortgage some help. Mortgage refinancing will be offered to homeowners at a low 2% fixed rate which will mean hundreds of dollars per month in savings.

According to President Obama, an estimated 9 million homeowners will be able to take advantage of this home mortgage stimulus plan and either refinance or modify their home mortgage. These homeowners will be able to obtain a fixed 2% mortgage rate. Homeowners who are facing foreclosure can even apply and be approved in order to save their home.

Some of the other benefits of Obamas mortgage refinance stimulus plan are:

-Reduction in the total principal amount due on the home loan and a lower interest rate obtained through either refinancing or modification.

-Only homeowners with more than one mortgage will not be able to refinance at the ultra low 2% rate. This part of the plan is only for homeowners with one mortgage,

-Any mortgage backed by either Fannie Mae or Freddie Mac is automatically eligible to refinance or modify into a low, fixed rate, 2% home loan.

-If your homes value has dropped due to this mortgage crisis, or for any other reason, by 15% or more, you will be eligible to refinance into the 2% fixed rate. This means that less foreclosures would occur resulting in more confidence in the housing marker and an overall upswing in home values.

-Using the home modification plan, homeowners mortgage payments will not be allowed to exceed 31% of their gross monthly income.

-Refinancing or modifying a mortgage using this plan means there will be no closing fees or costs.

-When a home does get refinanced or modified through this Government package, a long term loan is typical. Home loans of 20 to 30 years are most likely as it helps drive down the monthly payments, and leads to a better chance of the homeowners being able to make the monthly payment.

Homeowners all across the country will greatly benefit from this stimulus refinance plan. President Obama wants homeowners to stay in their homes, and not lose them to foreclosure. This plan will restore confidence in the housing market, and with that home prices should rise once again. Taking advantage of this plan is relatively easy as the requirements are pretty minimal. Millions of homeowners can start seeing huge savings now by using this Government backed plan. Refinance now and save hundreds, or possibly, more importantly, your home.

-M Petrone

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