Can you imagine the savings in having a 4.5% fixed rate mortgage? Well now, with President Obamas “Making Home Affordable Plan” this is possible for millions of homeowners. Under the guidelines of this plan, a homeowner can refinance or modify their current home loan into a new one, with a 4.5% fixed rate. Here is how it all works.

The Government and President Obama have funded this housing stimulus refinance plan with over $75 billion in funding. This money will mainly be used to give cash incentives and bonuses to cover and potential losses a mortgage lender or bank may incur by refinancing or modifying a homeowners mortgage. This means that with less financial risk, the approval rates for refinancing and modification should go up. When a homeowner can refinance or modify their loan, they have a greatly increased chance of keeping and staying in their home, as opposed to mortgage default or foreclosure.

Under this plan, homeowners can look forward to 4.5% fixed rate interest rates. With these low rates, a homeowner will be able to save huge amounts of money each and every single month. This money could ideally be used to reduce other debts, improve your home, or for whatever else you can think of. It is hopeful that once foreclosures are reduced and home values start to rise again, consumer confidence will also rise, benefiting the entire housing market.

This is a great time for a lot of homeowners to at least consider refinancing or mortgage modification. This could, and probably will using this “Making Home Affordable” plan, save large amounts of money every single month for the average homeowner. President Obama has specially designed this plan to help the most financially struggling homeowners, although a lot of different people, regardless of finances, still qualify.

-M Petrone
www.RefinancingCondo.com

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