President Obama knows that the economy and housing markets are going through hard times, and homeowners everywhere are financially struggling. Home prices have dropped a lot and the number of foreclosures and people defaulting on their mortgages is increasing. These problems have led Obama to enact the “Making Home Affordable Plan” which allows 4% mortgage refinancing or loan modification. Here is how you can use this plan and save your home, or hundreds of dollars per month.

Due to the tough economy and housing market, many homeowners actually have a home loan that is worth more than their home, even after years of payments. This is because home values are dropping and foreclosures are rising. The lack of buyers made homes values dramatically drop in the past few years. Now a homeowner can owe as much as 5% more than their homes market value, and still get a 4% refinancing or mortgage modification. This helps a lot of homeowners who have been paying their mortgage on time every month, and still owe more than their home is worth.

The overall goal of this plan is to help over 9 million homeowners save money or their home by refinancing or modification of the mortgage into a affordable monthly payment. Mortgage lenders, banks, and Obama know that when a home is foreclosed on, no one really wins. The banks and lenders would rather work with you and help you keep your home, then let it be foreclosed on. This stimulus plan from Obama will give cash incentives to mortgage lenders and banks who help and approved at risk homeowners for a refinancing or mortgage modification into a 4% fixed rate. That means that now it is easier, and more beneficial than ever to take action and refinance or modify your home loan. Do yourself a favor and take advantage of this plan.

-M Petrone

Subscribe via email

Enter your email address:

Delivered by FeedBurner