People all around America are being affected by the current economic struggle we are all facing. The housing market has taken huge hits and is in crisis and homeowners are feeling the pressure. President Obama is aware of the situation many homeowners are facing and has enacted the “Home Affordability Plan” to help struggling homeowners. The stimulus plan that he has created is giving homeowners the option of refinancing or modifying their current mortgages rates into a fixed 4.5% rate. The combination of the high foreclosure rate and the increase in unemployed homeowners the housing market is in the worst crisis it has ever seen. Homes that are in the area of homes that have been foreclosed or in the process can drop in value by as much as 9%.

This new stimulus plan has been created to allow homeowners avoid foreclosure and stabilize the housing market. The stimulus plan was begun in early March and all those who have taken advantage of the plan have save millions of dollars. What the plan homes to achieve is for homeowners to be able to get refinance or modify their mortgages. Homeowners should be able to refinance or modify their mortgages without tough restrictions form the banks or other financial lenders. Those with low equity, bad credit or those who owe more than their homes are worth will be able to approach banks and lenders and get approved. Lenders and banks are being given incentives from the government for every loan they approve for every high risk borrower they approve. What this means is that now is probably the best time to refinance or modify your current mortgage loan. Along with this the interest rates have hit an all time low and can easily save homeowners hundreds of dollars a month.

Here are some requirements that need to be met in order to qualify for the plan.

· The home in question must be a primary residence. Those homes bought as investments or for second homes are not eligible under this plan.

· Homeowners that owe 105% of their homes total value are eligible for home refinancing and modification under this stimulus plan.

· Any homeowner who was issued their loan by either Fannie Mae or Freddie Mac is automatically eligible for home refinancing and modification.

Under the “Home Affordability Plan” any new loans will not exceed 38% of the homeowners’ total monthly income. Homeowners who have defaulted on their mortgage and those facing foreclosure can refinance or modify their current loans into a 4.5% fixed interest rate.

This new stimulus plan has broad criteria and requirements but can help many homeowners in trouble. There are over 6 million homeowners that are eligible for home mortgage refinancing and modification that can save those people hundreds of dollars every month on their mortgages. The money that is saved can be used for other debt, home repair and life’s other necessities.

Look around at different banks and financial lenders for different quotes. Do some research and find the best offer for your situation and go from there. If done correctly refinancing your home can be the answer to getting back on your feet, however if done wrong it could end up costing you more. So do not rush into anything that you don’t understand completely or don’t feel comfortable with. Being patient and doing a bit of homework will be worth it in the end.

-M Petrone
www.RefinancingCondo.com

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