President Obama has enacted his “Making Home Affordable” loan refinance stimulus plan to help millions of homeowners, and the housing market. Homeowners who choose to refinance their home mortgage using this plan will be eligible to for refinancing at a 2% fixed rate. The average savings for homeowners will be hundreds per month, here is how:

-Homeowners who have faced some type of “Financial Hardship” such as loss of job, loss of income, hospital bills, tuition, or a lot of other expenses will be eligible to refinance their home loan into a new mortgage which will have a 2% fixed interest rate.

-The unfortunate homeowners who have seen their home values drop by 15% or more in response to the mortgage crisis will be eligible for a home mortgage modification or refinance at the same 2% fixed rate. This will help millions of homeowners in some of the hardest hit housing markets.

-Homeowners who have gotten themselves into an ARM (Adjustable Rate Mortgage) can now choose to refinance into a more stable fixed rate home loan with a 2% interest rate.

-A streamlined fast track program is now in effect for homeowners who are facing foreclosure. This plan will give a homeowner facing being foreclosed on the option to refinance into a more affordable monthly mortgage payment and possibly save their home.

-Homeowners who have their home loans backed, owned, or insured by Fannie Mae or Freddie Mac are automatically eligible, regardless of financial situation, for a home loan modification. The guidelines for this plan mean that a homeowner will not have to pay more than 31% of their monthly income to their mortgage payment.

-Free professional mortgage representation and assistance is now available from government approved HUD officers. These mortgage counselors are professionals who will evaluate your situation and act as a representative for you when negotiating with banks or mortgage lenders.

The millions of homeowners who are eligible for the home mortgage refinance stimulus plan from Obama should take advantage. Almost every homeowner who is eligible will see an average monthly savings of hundreds of dollars. This plan will also help the housing market as a whole as home prices stabilize and eventually rise as consumer confidence returns to the housing market. At least look into refinancing your home loan and see if the potential savings that can be had are worth it, odds are they are.

-M Petrone

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