In an effort to reverse the downward trend in the housing market, President Obama has enacted his “Making Home Affordable” plan which is a home mortgage refinance plan that allows homeowners the chance to refinance their home loan into a fixed 2% interest rate. Millions of homeowners are eligible to take advantage of this plan and here is how:

-The home mortgage in question must be completed and signed on before January 1st, 2009.

-In order to take advantage of this plan, the home must be lived in as a primary residence by the homeowner.

-All income must be easily verifiable through the use of pay check stubs and tax returns.

-The home mortgage amount that is due must not exceed $729,500.

-A handwritten and signed letter of “Financial Hardship” may be needed from the homeowner in order to refinance under this “Making Home Affordable” plan.

When a homeowner is eligible for this home mortgage refinance plan from Obama, here are some of the advantages that can be had:

-Homeowners who take advantage of this plan to modify or refinance their home and be able to get a monthly mortgage payment that will not exceed 31% of their monthly income.

-Home interest rates will be dropped to as low as 2% in order to meet the guidelines from Obama in his “Making Home Affordable” refinance plan.

-No type of closing costs or fees will be charged to the homeowner when refinancing or modifying a home mortgage.

-As an added incentive to homeowners who refinance, if monthly mortgage payments are made on time and in full, the principal will be reduced, up to $5,000. over the course of 5 years.

-Balloon payments may be added to homeowners who need it on to the final payment of the home loan in order to make up for the low 2% home mortgage refinance.

-After an initial 5 year period, the home interest rates can be readjusted by the mortgage lender or bank. The initial ultra low 2% interest rate was to help the homeowners get back on their feet and financially recover.

-A homeowner who takes advantage of this plan will only be allowed to refinance their home mortgage one time. After that, there is no more chances to modify or refinance a home mortgage.

The Federal Government and President Obama have dedicated over $75 billion to help the housing market, and homeowners. The low refinancing rate available now is a great chance to save a large amount of money every month, or maybe even your home from foreclosure.

-M Petrone

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