President Obamas “Making Home Affordable” plan gives over 9 million homeowners an option to refinance their home loan into a fixed 2% mortgage. This will save hundreds of dollars per month for the average homeowner. Here, I have included some highlights of this mortgage refinance stimulus as well as how to qualify:

-Homeowners who have made every mortgage payment on time and in full for the past 12 months. If you have any late fees or were late paying, that is ok, as long as you were not more than 30 days late.

-Many unfortunate homeowners have lost their job, have a reduced income, or are facing large medical bills, or other debts. If these homeowners are willing to sign a letter of “Financial Hardship” to that effect, they will have the chance to refinance into a 2% home loan.

-Homeowners by the millions have seen their property value drop by 15% or more due to the “Mortgage crisis”, to these homeowners, a home mortgage refinance will be offered at a fixed 2% rate.

-If your home mortgage is backed by home mortgage lending giants Fannie Mae or Freddie Mac, you are automatically eligible to modify your home loan into a new low interest rate.

-Homeowners who choose to loan modification rather than mortgage refinancing, will be able to get a mortgage payment that does not exceed their monthly income by more than 31%.

Under the guidelines of this “Making Home Affordable” plan from Obama, the government will give cash incentives to mortgage lenders and banks who approve modification or refinancing for these at risk homeowners. This means that even if denied before, now is a great time to refinance or modify your home loan. Between this and the all time low mortgage interest rates being offered, odds are good that a refinance is a financially smart thing to do. Taking advantage of this Obama bailout for homeowners will save millions of people hundreds of dollars every month.

-M Petrone

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