There has been a new mortgage stimulus plan that President Obama has enacted. The new plan will help millions of homeowners to refinance their current mortgage loan into a low 4.5% fixed rate. This plan “Home Affordability Program” will help homeowners save hundreds of dollars every month. This is how:

At this moment even people with bad credit can get a grant that is offered to homeowners. This program is run by the government and it pinpoints the people that only need help for a short term. Homeowners can use these grants to repay their loans.

There have been new loan modification programs for those homeowners facing tough financial times. Difficulties can range from loss of jobs, losing income, unexpected or uncovered medical expenses or other debt. These new loan modification programs will help struggling homeowners with more affordable monthly mortgage payments. The new payments will be no more than 31% of their total monthly income. The homeowners must also not have any other debts that exceed 51% of their total monthly income.

President Obama and the Federal Reserve are working so that current homeowners and potential homeowners lock in a rate of 4.5%.

Homeowners can look into a mortgage counselor as well, however if they can’t afford one look to the HUD. The HUD can appoint you a counselor free of charge to help with the process, they can also act as representatives when dealing with lenders or banks.

The value of homes have dropped dramatically recently because of the struggling economy. Those homeowners who have watched their homes value drop by 15% or more will be able to refinance their home into a 4.5% fixed mortgage rate. This is done in hopes to help homeowners during the recent housing market crash.

The economy is struggling these days and President Obama is aware of it and with loan modification and fixed rates he hopes it will help. President Obama has put $75 billon of government money aside to help struggling homeowners refinance their mortgage. Everywhere you look there are people facing foreclosure and the values of homes continue to spiral out of control. With Presidents Obamas new stimulus plan the housing market should be stabilized and in turn the values of homes will begin to rise. Mortgage refinancing is a great way to save money if it is done the correct way. With the “Home Affordability Plan” issued by President Obama homeowners everywhere have a chance to keep and stay in their homes. Speak with a lender or bank to take advantage of this opportunity.

-M Petrone

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