Homeowners can now get a much more affordable monthly home loan payment thanks to President Obamas “Making Home Affordable” plan. This plan will allow a homeowner the chance to refinance or modify their mortgage into a low interest, fixed rate, home loan. Millions of people can use this plan for themselves. Here are some additional things you should know.

The over $75 billion used to fund this plan will mainly be given to mortgage lenders and banks. This money will allow them to approve at risk homeowners who may lose their home, or default on their mortgage. With the stimulus money, the mortgage lenders can approve more homeowners than they would be able to without it. Now, homeowners who have been denied in the past are getting approved. Homeowners can even get a mortgage refinancing or modification if they owe up to 5% more on their home loan than the homes actual market worth.

Here are some eligibility requirements:

-The home must have a balance of less than $729,500 remaining on the balance.

-Homeowners can not have declared bankruptcy.

-Monthly mortgage payments must exceed 31% of a homeowners gross monthly income.

-The home in question must be lived in as a primary residence. No second or vacation homes are allowed to use this plan.

This new mortgage refinancing and modification plan will save millions of homeowners from losing their home. Right now the economy is struggling and the housing market is in even worse shape. Homeowners needed a plan like this, before things got even worse. This plan will help the homeowner, the lender, the housing market, and the over all economy.

-M Petrone

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