Homeowners everywhere are struggling financially and President Obama is very aware of that. This is why he enacted the $75 billion “Making Home Affordable” plan which allows typical homeowners the opportunity to refinance or modify their home loan into a fixed rate 2% mortgage.

With foreclosures on the rise, and more expected, this plan will help a homeowner who is in or facing foreclosure save their home. With the housing market in bad shape, this stimulus plan will reduce the number of foreclosures, which will restore home values as well as market stability. Right now, a lot of homeowners actually have a home mortgage in which they owe more than their home is actually worth. Luckily though, this plan from Obama will allow homeowners who owe as much as 5% more than their homes value on their loan will be allowed to refinance or modify their mortgage. Typically, this would be nearly impossible for a homeowner to do but this plan will give cash incentives to mortgage lenders and banks who work with struggling homeowners. That means with less risk financially on the line for a lender or bank, they will be more likely, and in most cases, happy to offer you a home mortgage refinance or modification.

As mentioned before, some things which were typically needed to refinance or modify a home loan, such as 20% equity in your home or the cash equivalent, are no longer needed to get approved. This means that even if you have been rejected for a refinancing or modification, your odds of approval now are much greater than ever before. This can be a great way to get your finances in order or maybe even more importantly, save your home.

Do the right thing and refinance or modify your home loan the right way. This is an amazing chance for over 9 million eligible homeowners to save a lot of money every month by using the Government and Obamas “Making Home Affordable” plan.

-M Petrone

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