The Federal Government along with President Obama have recently enacted a $75 billion housing bailout program. This plan will allow an estimated 9 million homeowners an opportunity to refinance or modify their existing home mortgage into a new, 4% fixed rate home loan. This plan will save a lot of people a lot of money, or maybe even their homes.

All across the country, the bad economy is taking its toll. Homeowners are losing their jobs, income, facing huge high interest debts, or are stuck in bad mortgages. The money a homeowner saves from taking advantage of this plan can be used to improve personal their financial situation, and help restore consumer confidence in the housing market. Even homeowners who are already in the foreclosure process have a greatly increased chance of saving their home through use of this plan. A streamlined home loan modification or refinance process is in place designed to help homeowners who are about to lose their home to foreclosure. This part of the plan will help millions of homeowners stay in their home and avoid foreclosure, which benefits no one, the mortgage lender, the borrower, or the market.

Mortgage lenders and banks will now be receiving cash incentives from the Government which will allow them to approve more refinance or modification applications with less risk to them. Mortgage lenders and banks are now easier to work with as their risks are minimized and they know, as everyone else does, that a foreclosure benefits nobody and further hurts all parties involved. Mortgage lenders and banks would much rather take a percentage profit loss than a huge loss of a loan being defaulted on and now they are responsible to sell the home too. It is much more common, especially now, to find that banks and money lenders, are much more willing to renegotiate your interest rates, terms, or conditions, in order to keep you in your home. That is why these 4% fixed rate mortgage refinance and modification options are a great chance for the average homeowner to save hundreds of dollars every month.

Almost all homeowners should at the very least look into the potential savings that could be had from using this “Making Home Affordable” plan from President Obama.

-M Petrone

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