The economy, and in particular the housing market, are going through some tough times. Luckily though, an estimated 9 million homeowners could start to see some relief thanks to President Barack Obamas “Home Affordability Plan” which is a home loan refinance or modification package that offers 4.5% fixed rate refinancing for all homeowners.

This plan, is backed by the Government to the tune of $75 billion, will give cash incentives to mortgage lenders and banks who follow the guidelines set by Obama. This means refinancing and home loan modification is easier than ever to get approved for, regardless of being denied in the past. These mortgage stimulus plans offer interest rates as low as 4.5% for all homeowners. This package will help curb the increasing number of foreclosures, which only add more chaos to the housing market, and help restore homeowner and buyer confidence. Here are some other ways that this stimulus home mortgage refinancing bailout plan from President Obama offers:

-The chance for homeowners who have seen their property values drop by 15% or more to refinance into a 4.5% fixed rate home loan and recover some of their losses. This helps a large number of homeowners who have purchased their house in the past 5 years and have since then seen their home values dwindle down significantly lower than what they paid for the home.

-Homes with mortgages backed or insured by one of the two gigantic mortgage lenders, Freddie Mac or Fannie Mae, are automatically eligible for a home loan modification, regardless of their financial situation. Under this plan, the monthly mortgage payment will not be allowed to exceed 31% of the homeowners gross monthly income.

-Homeowners who are facing immediate foreclosure are eligible for a stream line mortgage refinance procedure that will allow them to save their home and refinance into a stable fixed 4.5% interest rate. This may be the only option some homeowners have left.

-A requirement for this stimulus refinance plan is that the homeowner use the home as a primary residence. This mortgage package from Obama does not cover second homes or investment properties.

-Some of the typical requirements needed in the past such as 20% equity in your home, are no longer needed to refinance or modify a home loan by mortgage lenders and banks participating in this bailout.

Refinancing a mortgage has never been easier or more beneficial than it is now for millions of homeowners. Taking advantage of this “Home Affordability Plan” from President Obama is almost a sure fire way to save hundreds of dollars each month on your home loan payments. The rush to refinance is on and you should to as the results can easily be one of the most money saving things you can possibly do.

-M Petrone

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