Homeowners with a mortgage which is backed by either Freddie Mac or Fannie Mae are in luck. Now, with President Obamas “Making Home Affordable” plan, a homeowner with a mortgage backed by either of these huge companies can get a fixed 2% interest rate when they refinance or modify their home loan. Here we explain how this plan works, and how you can take advantage.

In order to get a home loan refinancing or modification through Fannie Mae or Freddie Mac a homeowner needs to meet these requirements to use Obamas plan:

-Mortgages and home loans which are backed by either Fannie Mae or Freddie Mac are now automatically eligible to get a 2% refinancing or loan modification. This is possible due to Obamas housing bailout plan. Mortgages modified through Fannie or Freddie will be lowered to a monthly payment that does not exceed 31% of the homeowners gross monthly income.

-Homeowners all across the country have seen the values of their homes drop dramatically as a direct result of the struggling economy, and the even worse housing market. Now, these homeowners are able to secure a fixed 2% interest rate when their home loan is modified or refinanced through Obamas plan.

-Homeowners who have recently filed for a bankruptcy are not eligible to use this plan from Obama. Even if you have a mortgage backed by Freddie Mac or Fannie Mae. There are alternative methods which will save you on your home loan though, and they will most likely fit your needs.

-A lot of homeowners now have a mortgage that is more valuable than their homes market value. Now using this plan, a homeowner can refinance or get a mortgage modification even if they owe up to 5% more on the loan than the homes actual market value.

Now, homeowners looking for a mortgage modification or refinancing will have an easier time than ever being approved. The savings that can simply be had through calling your lender and asking are unheard of. Homeowners are saving hundreds of dollars every single month by reducing their interest rates, or changing the terms and conditions of their home loans. This stimulus plan from Obama will restore home values, stop foreclosures, and help the overall economy get on the track to recovery.

-M Petrone

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