Homeowners who are feeling the effects of this mortgage crisis can count on some relief from President Obamas mortgage stimulus plan. This “Home Affordability Plan” will enable an estimated 9 million homeowners refinance their mortgage into a new one with a 4.5% fixed rate. Here is how homeowners can take advantage:

This mortgage stimulus plan will have a big impact on your monthly mortgage payments. Refinancing using this plan can easily save a homeowner hundreds of dollars per month. The Federal Government has set aside over $75 billion dollars to help homeowners recover and not have o face foreclosure or defaulting on their mortgage.

How this housing stimulus plan from Obama will save you lots of money.

-Mortgage lenders and banks will be given cash incentives which will allow more homeowners the chance to be approved for a refinance. These cash incentives will allow mortgage lenders and banks to more easily take on “At Risk” homeowners and approve their refinancing application.

-The typical 20% equity needed in your home in order to refinance is generally not needed when refinancing using this mortgage stimulus.

-Homeowners who have seen their property or home values fall by more than 15% will qualify for a home mortgage refinance into a new home loan with a 4.5% fixed rate.

-Homeowners who have a mortgage owned or insured by lenders Fannie Mae or Freddie Mac are automatically eligible for a loan modification in which a mortgage can not exceed 31% of the homeowners gross monthly income.

-Homeowners who are facing foreclosure or mortgage defaulting due to a “Financial Hardship” such as medical bills, loss of job or income or other debts will be able to refinance their home mortgage into a 4.5% fixed rate.

-A homeowner will now find it even easier to refinance out of an ARM (Adjusted rate mortgage) and into a more stable fixed rate mortgage at 4.5%.

Refinancing a home mortgage
will be a great benefit to millions of homeowners who take advantage of this mortgage stimulus plan. The savings that can be had could easily add up to hundreds of dollars every single month. Around 9 million homeowners can take advantage of this great time to refinance and start seeing savings almost immediately. This will help curb the increasing foreclosures and mortgage defaults. Overall this stimulus plan will restore confidence to the struggling housing market and help homeowners recover. Refinance your home mortgage now using this government assistance while there is still time to take advantage.

-M Petrone

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