President Obamas home loan modification and refinancing package, known as the “Making Home Affordable” plan, is expected to help nearly 9 million homeowners. The help comes from new, Government backed, 4% fixed rate home mortgage refinancing and modification options. The savings easily add up to hundreds of dollars every month.

Even homeowners who believe that they are not qualified to get a good, low, fixed rate interest rate due to having a bad credit score will be surprised at the amazing offers now available.

Homeowners who happen to have a mortgage financed or insured by either Freddie Mac or Fannie Mae are automatically eligible to take advantage and lock in the Government backed fixed 4% home loan interest rate. Also keep in mind that this plan will only be available to homeowners who live in the home as a primary residence.

This “Making Home Affordable” plan basically breaks down to 2 options for homeowners. The first being a home mortgage refinance, and the second being a home loan modification. If a homeowner owes 105% or less than the value of their home, owes less than $729,500 on their home loan, and who has not missed or been over 30 days late on a mortgage payment for 1 consecutive year, they can take advantage of this plan. Even homeowners who would not typically qualify for traditional refinance will be eligible for approval for this plan.

Homeowners who are having tough financial times, and many are especially now, the second part of this plan may help you. The second main part of this “Making Home Affordable” plan is home loan modification, at the same 4% Government backed fixed rate, for homeowners who have fallen behind on their mortgage payments. This plan also helps homeowners who have a monthly mortgage payment that exceeds 31% of their gross monthly income.

Once the modification or refinance process is completed, the homeowner has three months to prove they are capable of paying the new mortgage payments. Upon three months of on time payments the rates will then be locked in for the next 60 months. This “Making Home Affordable” plan will truly help millions of homeowners save hundreds of dollars every month.

-M Petrone

Subscribe via email

Enter your email address:

Delivered by FeedBurner