Recently, President Obama announced his $75 billion “Making Home Affordable” plan which will let homeowners take their current mortgage and refinance it into a new 4% fixed rate home loan. This plan will save the average homeowner hundreds every month. Taking advantage of this plan is easy. Are you eligible?

Well if you meet any of these qualifications:

-Your personal income can (and will be) be verified using tax returns and pay stubs. The income will be scrutinized so you the homeowner do not run into this problem again.

-A personal letter of “Financial Hardship” hand written by and signed by you. Include any ducuments which support this fact, pink slips, bills etc.

-The homeowner must agree to go to free credit counseling, provided by the Government, if their monthly household debts exceed 55% of their monthly income.

-The mortgage must have an amount less than $729,500 remaining on balance.

-The mortgage must have been signed on and completed prior to January 1st 2009.

-The home to be refinanced must be lived in as a primary residence by the owner.

Here are some options Mortgage Lenders and Banks can offer using this plan:


-Your monthly mortgage payments will be lowered to no more than 31% of your gross monthly income.

-Interest rates can actually go to as low as 2% but typically will be closer to the 4% range.

-Their will be no fees or other costs for performing a home mortgage modification or refinance.

-Banks and mortgage lenders could potentially set up balloon payments at the end of the mortgages in order to recover their money from offering such low monthly payments. This payment needs to be paid off prior to selling or refinancing your home another time.

-For every year of on time payments, the Government will reduce the amount of principal you owe on your home by $1,000 up to a maximum of $5,000 just for making payments on time.

-The banks and mortgage lenders can adjust the interest rates after a 5 year period. This plan is to help homeowners recover from their financial troubles.

-This plan can only be used one time to refinance or modify your home loan.

If you have remained current and up to date on your monthly mortgage payments, and are not able to modify your home loan, then refinancing may be the best alternative option. Refinancing into a fixed 4% interest rate with President Obamas plan can be very easy. Here are some requirements for this:


-Again, the home must be a primary residence.

-Proof of income to support the new mortgage and other debts is required.

-Cash taken out from the new home loan can not be used to pay other loan debts you may have.

-The home loan must be financed by Fannie Mae or Freddie Mac.

-The mortgage interest rate will be determined by the national average and points may be added on as well as fees charged.

-The new mortgage will be either for 15 or 30 years with a fixed rate of interest.

-The banks low interest offers may expire after an initial 5 year period.

-Homeowners can even refinance if they have a mortgage worth up to 5% more than their homes current value.

Home mortgage refinancing or modification
, especially using this plan will benefit millions of homeowners. The reports are coming back already and the average homeowner is saving hundreds every month by taking advantage of this plan and refinancing their home mortgage.

-M Petrone
www.RefinancingCondo.com

Subscribe via email

Enter your email address:

Delivered by FeedBurner