It is no secret that the average American is suffering the most because of the tough economic time we are all going through. President Obama is well aware of the struggles many people are facing and has released his “Home Affordability Plan”. His stimulus plan will help struggling homeowners refinance or modify their current mortgages into a fixed 4.5% interest rate. Foreclosures are at an all time high and the rate of unemployed homeowners is also on the rise, because of this and some greedy lenders and irresponsible buyers the housing market is in crisis. The value of homes have dropped by as much as 9% because of homes being foreclosed all around people’s neighborhoods.

Obamas new stimulus plan will help to stabilize the housing market and help homeowners stay in their homes. The “Home Affordability Plan” was introduced in early March and has since saved homeowners who have used the plan millions of dollars and has helped them stay in their homes and avoid foreclosure. The end goal for this housing stimulus plan is for homeowners with bad credit, those that owe more then the house is worth or low equity to be able to get refinanced or modify their mortgage loan regardless of these issues. The government has given the banks and lenders incentives for every homeowner they approve for home modification or refinancing who is considered a high risk. This meaning that it is a lot easier to be approved for home refinancing and modification these days than ever before. This along with the low interest rates homeowners are in a position to save thousands of dollars a month.

There are some requirements that must be met prior to being approved for the new stimulus plan.

Homes that were bought as second homes or as investments are not eligible to take part in the new housing plan. The home must be a primary residence.

Homeowners can not owe more than 105% of the homes total value.

Those homeowners that received their loans from Fannie Mae or Freddie Mac are qualified for refinancing and mortgage modification. The home stimulus plan will help reduce mortgage payments to 38% of the homeowners’ total monthly income.

Those people that are now facing foreclosure or have defaulted on their mortgage payments can refinance or modify their loan with a fixed interest rate of 4.5%.

The requirements for this plan are a bit broad but can help many. There are over 6 million Americans that will qualify for this new stimulus plan for home refinancing and modification and can save thousands on their mortgage payments monthly. Look around for different banks or lender and get quotes for yourself. Look for offers that will benefit you the most and go from there. If done right mortgage refinancing and modification can save thousands of dollars. Be patient and do your homework regarding the process so that you don’t lose money or you home.

-M Petrone

Subscribe via email

Enter your email address:

Delivered by FeedBurner