Last week, President Obama urged homeowners to refinance their home and take advantage of the near all time record low interest rates. The “Home Affordability Plan” enables an estimated 9 million homeowners eligible for a home refinance. This will save hundreds of dollars per month in interest payments for the average homeowner.

This mortgage stimulus plan will address some of the biggest factors that have caused this mortgage crisis in the first place. This will be done through cash incentives given by the Government to mortgage lenders and banks who approve refinancing for homeowners facing financial hardships. That means being approved for a mortgage refinance will now be easier than ever as lenders and banks approve more and more people. Here are some of the highlights from this mortgage stimulus program from President Obama:

-Homeowners whose property values have dropped by 15% or more will be able to refinance their home mortgage. This will help homeowners in some of the hardest hit housing markets, where foreclosures and lack of home sales have dramatically plummeted home values.

-The Federal Reserve and President Obama would both like mortgage interest rates to be set at a standard 4.5% fixed rate for all homeowners and potential home buyers.

-Refinancing out of an ARM (Adjusted Rate Mortgage) and into a fixed rate mortgage will be easier and more beneficial than ever for homeowners.

-Homeowners who are facing foreclosure or defaulting on their mortgage will be approved on a fast track route to a home refinance. This enables the homeowner to keep their home and not lose it to foreclosure.

Overall homeowners who refinance using this government mortgage stimulus program will save a significant amount of money on their mortgage every month. This plan will also help the housing market overall as confidence is restored and home values stabilize. Refinancing a home mortgage, especially now with this government help, the right way will be a huge financial benefit. Look into it today.

-M Petrone

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