As nearly every American is, President Barack Obama is well aware of the current economic difficulties facing millions of homeowners. Home prices have plummeted, and the rapidly increasing amount of foreclosures worsens the situation by lowering surrounding home prices up to 9%. Many homeowners now have a mortgage that is worth more than their homes market value. In response to these issues, President Barack Obama enacted is “Making Home Affordable” plan which is a housing and homeowner mortgage refinance or modification stimulus plan.

This plan was enacted last month and millions of homeowners are eligible. Things that were usually required for refinancing a home loan such as, 20% equity in your home, in order to be approved for a refinance or modification of your mortgage. This Obama stimulus plan will make monthly mortgage payments more manageable for homeowners and help millions save hundreds per month, or avoid foreclosure. The ultimate goal of this “Making Home Affordable” package is to increase confidence in the housing market, help struggling homeowners, and prevent foreclosures. This will be done by using part of the $75 billion homeowner bailout package, approved by congress, to give cash incentives to mortgage lenders and banks to approve at risk homeowners for a mortgage modification or refinance. So with even more incentives to refinance your home, mortgage lenders will be more flexible on who actually gets approved and how much they are able to work with you.

Homeowners who are considering refinancing or modification of their current home loan using this stimulus plan, will be able to get a mortgage payment that is equal to or less than 31% of their gross monthly income. Currently, there are millions of homeowners who pay 40% or even 50% or more of their income to their mortgage. A 15% or 20% reduction in monthly payments would quickly add up to a lot of money, especially in these cases.

There is an exact set of guidelines mortgage lenders and banks will have to use when taking advantage of this stimulus refinancing plan. Taking advantage of this plan will easily save a lot of homeowners a lot of money, especially taking into consideration the savings would be every month for the length of the loan. Look into a home mortgage modification or refinance today and see how much money you can save thanks to Obama.

-M Petrone

Subscribe via email

Enter your email address:

Delivered by FeedBurner