The tough economy, and worse housing market, have left millions of homeowners struggling to make their monthly home loan payments. There is relief for these homeowners though with Obamas “Making Home Affordable” plan which allows homeowners who are financially hurting, the chance to get a 2% fixed rate home loan through a simple mortgage modification or refinance. Here is how the plan works:

This $75 billion housing bailout plan is a great chance for a lot of homeowners to refinance or modify their home mortgage loan and obtain monthly payments which they can actually afford. The bulk of this package from Obama will be given as cash incentives to mortgage lenders and banks for every financially struggling homeowner they approve for loan modification or refinancing under the guidelines of Obamas plan. This means that banks and lenders risks are minimized, and therefore more applications will be approved. Hopefully this can stop the rise in the number of foreclosures, which hold the market back from regaining its full strength, and will restore consumer confidence in the housing market.

There is a very good chance you are eligible to use this stimulus plan and refinance or modify your home loan into a 2% fixed rate, however not everyone will be approved. Homeowners who meet the following requirements will be able to get the Government backed fixed rate 2% interest rate on their home mortgage.

Here, I have included some of the requirements from Obamas “Making Home Affordable” plan:

-Only homes in which the homeowners lives in as a full time residence will be eligible for a 2% home mortgage refinancing or modification. This plan will not apply to second homes or investment properties.

-The balance remaining on the home loan must not exceed $729,500. It could have been higher at one point, but to use this stimulus plan the remaining amount owed must be less than that.

-If you are a homeowner who is currently paying more than 31% of your gross monthly income towards your monthly mortgage payment, you can use this stimulus plan and get your home loan modified into a much more affordable rate.

-The homeowner, must be going through, and show proof, of “Financial Hardship” in order to qualify for this plan.

Overall, this plan will assist millions of homeowners through refinancing or mortgage modification which allows a more manageable and affordable monthly home loan payment. You owe is to yourself, your family, your home, and your financial future to at least look into the savings that could be had from this plan.

-M Petrone
www.RefinancingCondo.com

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