The newly enacted “Making Home Affordable” plan from President Obama will allow millions of homeowners a 2% fixed rate loan modification or refinancing. This plan will save homeowners a lot of money every month, and more importantly, millions from losing their home to foreclosure or mortgage defaulting. Here is how it helps homeowners.

This “Making Home Affordable” plan is a $75 billion backed Government plan to help the struggling housing market, and ultimately stimulate the entire economy. This plan will give cash incentives to mortgage lenders and banks which provide their services, and apply to the plans guidelines, and provide a refinancing or modification opportunity for the borrower. This cash incentive will minimize the lenders risks and allow them to loosen the approval requirements, and approve more applications. This means that refinancing a home loan, even for homeowners in financial trouble, or stuck in a bad mortgage, is easier, and more beneficial than ever before.

When approved for a mortgage modification, your monthly payment will not exceed 31% of your gross monthly income, which is a huge relief for a lot of homeowners. Also, you can get a good refinancing deal even if you owe more on your mortgage than your home is worth, up to 5% more. This will help millions of homeowners who have witnessed their property values drop as a result of this housing crisis. The mortgage interest rates will be dropped to as low as 2% for homeowners who qualify, which is a lot. There is also a new streamlined mortgage refinancing process which lets homeowners who are facing foreclosure, a better chance to quickly take action and save their home.

Home mortgage lenders and banks know that foreclosure does not help anyone, and are willing to work with a homeowner to save their home through refinancing or mortgage modification, especially now using this Government backed plan. You owe it to yourself to try and save your home, or a lot of money every month, by simply calling a mortgage lender or bank and seeing the potential savings you could be getting, every single month. Take action now and save money or your home.

-M Petrone

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