The struggling economy has seriously hurt the housing market resulting in record high mortgage foreclosures. Luckily, President Obama has enacted a housing plan that will help around 9 million homeowners modify or refinance their mortgage.

The “Home Affordability Plan” is basically a mortgage stimulus that will help homeowners reduce their mortgage payments every month. This will be done through refinancing and loan modification. Mortgage lenders and banks will be given incentives, from the government, to help struggling homeowners, and at risk credit ratings as well. Cash bonuses for approving loan refinancing or modification allow the lenders and banks to take on more loans and allow refinancing. If you have been denied a mortgage refinance before, this plan will help you. It is now a lot easier to negotiate a better deal on your home loan.

I have listed eligibility requirements that you must meet to take advantage of the mortgage stimulus plan:

You must owe less than 105% of your homes value on your mortgage. This helps homeowners who have seen their property values sharply drop in recent years.
If your home mortgage is insured or owned by mortgage giants Freddie Mac or Fannie Mae.
The rates that the Federal Reserve wants to set are said to be some where around the 4.5% mark for all homeowners. This means everybody will have a 4.5% fixed rate mortgage available to them.
Monthly mortgage payments may not exceed 38% of the homeowners gross monthly income.
Counseling is available for free from appointed Urban development and US housing counselors.

Millions will save a lot of money by refinancing their home mortgage the right way and taking advantage of this Obama mortgage stimulus. This plan will save you a lot of money and maybe your home.

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