President Obamas “Making Home Affordable” plan will save millions of homeowners hundreds of dollars every month, or more importantly, their home from foreclosure. Fixed rate 4% mortgages can now be obtained through refinancing or home loan modification. Millions of homeowners can use this plan for themselves right now. Here is a few important things to know:

-Homes all over the country have dramatically decreased in value, mainly as a result of the bad economy and worse housing market. Now, homes which have dropped in value by 15% or more can use Obamas plan and refinance or modify the mortgage on that home into a low 4% fixed rate. This helps a rapidly growing number of homeowners who have seen the values of their homes drop a a result of the mortgage meltdown.

-Homes with a mortgage backed, financed, or insured, by Freddie Mac or Fannie Mae are now eligible for home loan modification. These are two of the biggest lenders in the country, and because of Obamas stimulus plan, they can now offer home loan modifications to all of its customers, into affordable, low interest, 4% fixed rate mortgages.

-The Federal Reserve and President Obama believe, ideally, that mortgage rates should be kept at an average of 4% for all homeowners, and will try to keep rates in check.

-Homeowners who have remained current and on time with their mortgage payments for the past 12 consecutive months yet are still facing financial hardships can now use Obamas “Making Home Affordable” plan to get themselves into a more affordable 4% fixed rate mortgage. Homeowners will need to sign a letter stating their financial hardships, and how they may lose their home. This letter should be attached to your home mortgage refinancing or modification application.

The economy is going through some bad times and the housing market is in even worse shape. However, this plan from Obama targets homeowners who truly need financial relief, or are at risk of losing their home to foreclosure, or mortgage default. Now, homeowners all across the country can take advantage of the “Making Home Affordable” plan for themselves and save a lot of money, or possibly their home from foreclosure.

-M Petrone

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