Homeowners who have missed some of their mortgage payments, and now are facing a loan default or home foreclosure, can now use 2 separate plans, enacted by President Obama, and refinance their home into a new fixed rate 2% mortgage. An estimated 9 million homeowners are eligible to take advantage of this government assistance, here is how:

*The mortgage must have been completed and signed before January 1st 2009.

*The amount due on the mortgage must be lower than $729,500.

*The home in questions needs to be the primary residence of the actual homeowner.

*Income must be verifiable through tax returns as well as pay check stubs.

*You must provide a letter of “Financial Hardship” in your handwriting and signed by you.

Here are some of the benefits that homeowners can take advantage of using this home mortgage refinance stimulus plan from the government and President Obama:

*Homeowners using this plan to refinance or modify their home loan will be able to get a monthly mortgage payment that does not exceed 31% of their monthly income.

*Mortgage lenders and banks will drop home interest rates to as low as 2% in order to meet the guidelines of Obamas “Making Home Affordable” plan.

*Homeowners will not have to pay any type of fees or closing costs to refinance or modify their mortgage with this government backed package.

*Balloon payments at the end of the mortgage are possible if monthly mortgage payments are too low to equal the loan amount upon expiration.

*Homeowners who make their monthly mortgage payments on time every month will receive reduced principal balances, up to $5,000 over the course of 5 years.

*After 5 years have expired on the home loan, interest rates can be readjusted. The initial low mortgage rate is in order to help homeowners get a grasp of their financial situation.

*Homeowners are allowed only 1 home loan modification or refinance using this plan, there is no more chances to take advantage of this mortgage stimulus plan.

President Barack Obama and the government have set aside over $75 billion dollars to help homeowners. Home values are dropping and the housing market has been crashing for months now. Hopefully, this mortgage refinancing home stimulus package will help restore some confidence in the market and housing prices will start to rise again. Taking advantage of this plan will enable a lot of homeowners to save hundreds of dollars every single month, or most importantly of all, their homes. Look into the potential savings that you will most likely get using this homeowner bailout program.

-M Petrone

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