Homeowners everywhere are struggling to make it. Housing values have plummeted, the economy has worsened, and homes everywhere are in foreclosure. Luckily, President Obamas home mortgage bailout plan allows millions of homeowners the chance to get a more affordable mortgage which is done through refinancing or home loan modification. Here is what you need to know:

-Mortgages must have been signed and closed on before or on January 1st 2009.

-The home must be lived in by the actual owner as a main residence. This plan will not assist homeowners with their second, investment, or vacation homes.

-Homeowners must have a balance remaining of less than $729,500. It could have been higher at one point, just as long as the amount remaining to be paid is less than that.

-This plan calls for mortgage lenders and banks to provide mortgages that do not exceed 31% of a homeowners gross monthly income. If you are paying less than 31% of your income towards your monthly home loan, you probably will not see any benefits from this plan. However, most homeowners pay 50% or even 60% of their income towards their home loan. A 20% savings would easily equal hundreds of dollars.

-Mortgages backed by Fannie Mae or Freddie Mac are automatically eligible for a refinancing or modification through the use of Obamas “Making Home Affordable” plan.

-Homeowners facing financial hardships such as, loss of job, reduced income, hospital bills, bad mortgages, or a long list of other hardships, can now refinance into a more affordable monthly mortgage payment.

Mortgage refinancing and modification should be looked into by any homeowner who is having financial problems. The savings, especially now with Obamas plan, can easily add up to the hundreds of dollars per month. Homeowners can use this plan to save money, save their home, and get a more affordable mortgage. Take action now and see the big savings start next month.

-M Petrone

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