Fannie Mae and Freddie Mac will now be approving more home loan modification and refinancing applications than ever before, thanks to President Obamas “Making Home Affordable” plan. This plan will allow mortgages backed by either Freddie Mac or Fannie Mae to be refinanced or modified into a fixed rate 4.5% mortgage. Here is how you can take advantage:

These are some of the eligibility requirements for homeowners looking to use President Barack Obamas mortgage bailout stimulus plan:

-Interest rate reductions will be the main source for savings for mortgages backed by Fannie Mae or Freddie Mac. Home loans will be refinanced or modified into more affordable monthly payments according to the homeowners gross monthly income. This plan calls for home loan payments to not exceed 31% of a homeowners monthly income. Currently, millions of homeowners pay closer to 50% or even 60% of their income towards their home loan every month. The 20% reduction in monthly payments would greatly reduce them, every month.

-With the economy and housing market in such bad shape, a lot of homes have dropped in value. A big goal of this stimulus plan from President Obama is to help homeowners who have seen their home or property values drop by 15% or more. Typically these homeowners would have a hard time refinancing or getting a home loan modification. Now though it will be easier and more beneficial then ever, especially for homeowners with a mortgage from Fannie Mae or Freddie Mac. A homeowner who uses this “Making Home Affordable” plan from Obama will be able to get a 4% fixed rate mortgage through refinancing or loan modification.

-Homeowners who have declared bankruptcy, even if their home loan is financed or backed by Fannie Mae or Freddie Mac, will not automatically be eligible for a mortgage modification or refinance.

-Now, a homeowner who owes more than their homes market value, up to 5% more, can get a refinancing or loan modification. The stimulus housing plan from Obama will allow this, helping struggling homeowners with bad mortgages everywhere.

Refinancing and mortgage modification have never been easier or more beneficial for homeowners than they are now. Hundreds of dollars, every single month, will be saved by a homeowner who uses this plan to their advantage. Homeowners facing foreclosure should this plan to try and save themselves from losing their home. The least you should is call your lender and ask about how much you can save through using this refinance and home loan modification plan for yourself.

-M Petrone
www.RefinancingCondo.com

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