Homeowners who have missed some mortgage payments or who are facing foreclosure are now eligible for home loan refinancing through President Obamas “Home Affordability Plan” which is a $75 billion dollar stimulus plan to help struggling homeowners. Millions of homeowners are able to save hundreds of dollars with this plan. Here is how:
Here are the eligibility requirements:
-It must be for a first mortgage only, second mortgages do not apply for assistance from the government, and must be for less than $729,500
-The mortgage in question must have been transferred, signed, and finalized before January 1st of this year (2009).
-You must be the primary resident of the home you are attempting to refinance.
-You have a verifiable income and can provide pay stubs as well as tax returns.
-You have a letter of financial hardship written and signed by you. This can be medical bills, loss of job or income, reduced pay, etc..
-You must get credit help and counseling if your monthly debts are more than 55% of your monthly income.

Here are some new things banks and mortgage lenders can now offer:
-They can now lower your monthly mortgage payments to around 31% of your gross monthly income.
-Interest rates are going to be typically now around 4.5% although rates of as low as 2% will not be unheard of.
-Their are no fees or other costs for home loan modification or refinancing and any fees their would have been will be paid for by the Government.
-Banks or mortgage lenders can have balloon payments at the end of the loans if the monthly mortgage payments are too low.
-Any balloon payments that are in effect would need to be paid off prior to any refinancing, paying off of the mortgage, or selling of the property in the future.
-If you make your monthly mortgage payments on time after refinancing the government will reduce your principal gradually for 5 years with reductions totalling as much as $5,000.
-Rates can be adjusted again after 5 years. These low grace period rates available now are designed to help you get back on your feet.
-You are only allowed one refinance or loan modification and are not permitted to againin the future until the home is paid off.
Also, if you happen to be current on your mortgage payments but mortgage lenders or banks will not allow you to refinance or modify your mortgage due to the property value being less than the mortgage amount or not having enough equity this plan will help you. Government programs are now enabled to help homeowners whose property values have dropped during this mortgage crisis. Refinancing a home loan now is a great way to save a lot of money. Obamas stimulus plan makes refinancing easier and saves more money than ever. Refinance now the right way and see how much you can save.

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