Without even knowing, millions of homeowners are eligible for President Obamas “Making Home Affordable” plan which would allow them a chance to refinance their home mortgage into a new, fixed rate, 2% home loan. Eligibility requirements are very minimal and the savings can easily be hundreds every month. Here is how:

-Special cash incentives and tax cuts will be given to both banks and mortgage lenders who allow homeowners a home mortgage refinance under this “Making Home Affordable” plan. This will ease the requirements that were typically needed to refinance or modify a home loan and allow more homeowners the opportunity to get this 2% fixed rate.

-Now, there are new grant and loan packages available to homeowners who are struggling financially. These super low interest loans can be used for short term debt relief and help you reduce your overall amount of interest payments on all other debts.

-A homeowner who is eligible to modify their home mortgage may have to sign a letter of “Financial Hardship” to qualify for the 2% home interest rate from Obamas “Making Home Affordable” plan.

-Homeowners who happen to have their mortgage financed or insured by either Fannie Mae or Freddie Mac are automatically eligible, regardless of financial hardships or not, to modify their home loan into a new one with a fixed 2% interest rate.

-Those homeowners who are facing immediate foreclosure or are in danger of defaulting on their loan can be put on a fast track refinancing plan. This plan will allow for quick, hassle free refinancing when a homeowner is in a real danger of losing their home. The homeowners who use this part of the home mortgage refinancing plan and are facing foreclosure will have a much better chance of saving their home.

-As the mortgage crisis has taken its toll, many homeowners have seen their property values drop dramatically. Those homeowners who have seen their values drop by 15% or more will be eligible to refinance into a new fixed rate 2% home loan.

The goal with President Obamas plan is to help the millions of homeowners who are having a hard time financially. This plan will allow an estimated 9 million homeowners refinance their existing mortgage into a new one with a 2% rate. This 2% rate is much lower than any rate that has ever been offered anywhere for a home before. Hopefully, this plan will stimulate the housing market which would help all homeowners.

-M Petrone

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