Mortgage refinancing and modification have recently been a popular option for millions of homeowners all across the country. Especially with the introduction of President Obamas “Making Home Affordable” mortgage bailout plan. Homeowners can use this $75 billion stimulus plan for refinancing or home loan modification into a new, more affordable, monthly mortgage payment.

This stimulus plan from Obama will allow millions of homeowners who would not have been approved otherwise a low interest, refinancing or mortgage modification option. There is over $75 billion in funding for this plan, and an estimated 9 million homeowners are eligible to take advantage. This $75 billion in funding will primarily be given to mortgage lenders and banks to approve homeowners who are considered “at risk” of losing their home, or who are facing “financial hardships”. Homeowners who have become late, or outright missed, mortgage payments are considered at risk, and can now get a home loan modification or refinancing into a mortgage which is more affordable, and appropriate with their monthly income. Homeowners facing “Financial Hardships” which can include such things as, loss of job, hospital bills, reduced income, an increased mortgage payment, or a number of financial related things which you can not control, can get approved for a home loan modification. This Government stimulus plan calls for a homeowners to not have to pay more than 31% of their gross monthly income towards their home loan payment every month. Therefore, home loans will be modified to meet this requirement. Here are some other things you should know when using Obamas housing stimulus plan for yourself:

-Homeowners need to have closed on the mortgage before January 1st 2009.

-The home loan amount remaining must be less than $729,500.

-Homeowners can not use this plan more than one time.

-A homeowner can not have declared bankruptcy.

-The home must be the primary residence of the owner.

-Homeowners with a mortgage from Fannie Mae or Freddie Mac are automatically eligible for a home loan modification.

This plan will help millions of homeowners. Contact your mortgage lender or bank now and find out how you can take advantage.

-M Petrone

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