President Obamas mortgage refinancing and modification plan will allow homeowners the chance to get a 2% fixed home loan. This plan will save millions of homeowners hundreds of dollars per month. Applying and getting this 2% refinance for your home loan is easy, and is more beneficial to a homeowner than ever before. Here is how it all works.

Here, I have included some of the Guidelines for Approval using the “Making Home Affordable” plan from President Obama:

-Homeowners who use this plan and get a home loan modification will get a monthly mortgage payment that does not exceed 31% of their current gross monthly income. Currently, a lot of homeowners pay 50% or 60% of their income towards the mortgage, the 20% or more savings would add up to a lot of money every month.

-The home mortgage must have a balance of $729,500 or less remaining on it.

-The home must be lived in as a primary residence by the homeowner. This plan will not work for second or investment properties.

-Mortgage lenders and banks will be getting cash incentives from the $75 billion set aside for this plan to approve refinancing and modification applications from homeowners who are in financial trouble. This means that actually being approved for a refinance is now much easier as the risks are basically covered from the Governments cash incentives.

-The only home loans that will qualify and be approved for the fixed rate 2% home loan refinancing or modification were ones that were closed on and signed off on prior to January 1st 2009.

The bottom line is that a homeowner who takes advantage of this amazing plan from President Obama will see a huge reduction in their monthly mortgage payments. The savings being reported from homeowners who have already used this plan to their advantage, are hundreds of dollars every month, through interest rate reductions alone. This easily adds up to thousands of dollars over the course of the home loan. This money can be used for anything you want and is a great way to get your finances in order. Through refinancing or mortgage modification you will be able to save money, extend or shorten your home mortgage length, adjust terms and conditions, switch lenders or banks, and a whole list of other options. This is probably the best time you will ever see to refinance your home and you owe it to yourself to at least look into the potential savings.

-M Petrone

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