The Obama designed, and Government backed, “Making Home Affordable” plan will save millions of homeowners, on average, hundreds of dollars every month through 4% home mortgage refinancing and modification programs. Taking advantage of this plan is simple, and homeowners all across the country are qualified. Here is how:

Assistance for Homeowners with Financial Hardships, Bad Mortgages, and other Financial Problems.
Millions of Americans are having trouble financially, and a lot of it is due in part to the bad economy. Homeowners who are or have recently experienced a “Financial Hardship” can be automatically qualified for a home mortgage refinance or modification. The “Financial Hardships” can be numerous things such as, loss of job or income, hospital bills, tuition, bad mortgages due to property value depreciation, high debt to income ratios, and various other things. To qualify for the plan using this “Financial Hardship” method, hand write a letter stating your hardships and hand sign it. Include it in your home loan modification or refinance applications when applying at potential mortgage lenders or banks.

Another great part of this plan which many homeowners will benefit from is the ability to now refinance a loan for up to 105% of the homes actual market value. This will help millions of homeowners who have bought a home within the past 5 or even 10 years but still owe more on their mortgage than the home is worth. This is due, in large part, to the plummeting home prices flooding the country as homeowners are forced out of their homes and potential buyers are either scared, or can no longer afford to buy. This will also help homeowners whose property value has not declined but who have gotten themselves into a bad mortgage with either high interest rates, strict fees and terms, or both. Many people were lured into homes that they could not afford yet could get approved for during the housing boom a few years ago. Now, those homeowners are feeling the financial burden of making monthly payments they can barely, or in a lot of cases, can not afford. This would typically lead to foreclosures, short sales, and mortgage defaults. Now though, with this plan, many more homeowners will be approved for refinancing and modification to potentially save their homes.

Help for Homeowners who can actually pay their Mortgage every month, but could still use home mortgage relief.
This plan also has a special section for dealing with homeowners who have remained current on their monthly mortgage payments, yet could still use some relief due to the struggling economy. What that means for homeowners looking to refinance is that programs for home loan modification are now available that will allow a 4% interest rate, which is lower than nearly every homeowners current rate. The savings from this will be huge and the money can be used as the homeowner sees necessary.

Also, homeowners who happen to have a loan backed by Fannie Mae or Freddie Mac are automatically eligible to modify their mortgages into 4% interest rates. Nearly 60% of all home loans are backed or insured by these 2 lending giants so odds are yours is too. Check with your current mortgage provider and ask to be sure.

To Sum it Up.
Home mortgage refinancing or modification can be a very good thing for homeowners to do, especially now with Obamas “Making Home Affordable” plan offering incredible 4% interest rates for eligible homeowners. Talk with your lender, or potential lender, and see how much money you can save every single month by simply applying, and taking advantage of these government backed home loan packages.

-M Petrone

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