Millions of homeowners may be eligible for President Obamas home mortgage refinance plan. This stimulus package will allow homeowners the opportunity to refinance their existing home loan into a new 2% fixed rate mortgage. The savings can easily add up to hundreds per month. Qualifying is easy and here is how:

-Your existing home mortgage loan must be backed or insured by either Freddie Mac or Fannie Mae. You can check this out for yourself using their websites to check if your mortgage is backed by them.

-You need to have a perfect home loan payment history, for at least 1 full year. If even one mortgage payment is more than 30 days late, you are not going to be eligible for this mortgage refinance stimulus plan. However, if your mortgage payments were late, but not 30 days late or more, you will still qualify.

-The outstanding amount due on your mortgage must not exceed the value of your home by more than 5%. Use the mathematical formula [Remaining amount left on mortgage] / [Home Value]. If your figure is over 1.05% than you owe more than 105% percent of your homes value and will not qualify for this making home affordable stimulus package.

Here are some key points of this Making Home Affordable stimulus plan, if you qualify, from Obama:

-Even if you have a mortgage in which the loan to value exceeds 80% and have not paid for mortgage insurance before refinancing, you will not be required to pay it anytime after either.

-Especially these days, any home mortgage refinance will require income verification. It does not matter if the original mortgage was a stated income loan or not.

-This home mortgage refinance stimulus plan does not cover second mortgages of any kind.

-Their are no minimum credit scores needed to take advantage of this stimulus plan and refinance at 2%

-Mortgage lenders and banks are being given cash incentives for every at risk homeowner they approve for a refinance or modification. This will make being approved for a refinance easier than ever.

Typical homeowners, millions of them, are going to save hundreds of dollars every month by taking advantage of this Obama mortgage refinance stimulus plan. The housing market, as a result, will bounce back slowly as consumer confidence returns to their prior levels. Obamas 2% home refinance option will save a lot of homeowners a lot of money, but more importantly, it will save a lot of homeowners their homes.

-M Petrone

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