Are you a homeowner struggling to make their monthly loan payment? Do you need to save money every month? Are you at risk of losing your home to foreclosure or mortgage default? Well, President Obamas mortgage stimulus plan allows this. Loans can be extended in length or mortgage rates can be dropped to as low as 2% through refinancing or home loan modification. Here is information to help homeowners use this plan.

-Homeowners facing financial hardships can get refinancing or home loan modification into a new, low interest, lower payment, mortgage. This is possible because of new refinancing an mortgage modification options which are available through Obamas housing stimulus plan. These hardships can include things such as a loss of job, reduced income, hospital bills, and a lot of things which are out of the homeowners control. Typically, a homeowner would have a hard time getting approval for refinancing or modification of their home loan, but this plan helps. A homeowner should write a brief letter stating their financial hardships, what they plan to do about them, and why refinancing is so important, and include it with your application.

-Homeowners who have a mortgage through Fannie Mae or Freddie Mac, and pay more than 31% of their gross monthly income, are eligible for home loan modification. This is automatic eligibility and will result in a monthly payment that is less than 31% of the homeowners monthly income. Mortgage rates can be lowered as low as 2% in order to achieve this. Also, the length of the home loan can be extended up to 40 years, which also lowers the payment.

-Mortgages that are worth more than the homes market value are also eligible for refinancing. Typically a homeowner would need 20% equity in their home, or the cash difference to get approved for a refinancing. Now though, this plan from Obama allows homeowners a chance to refinance even if they owe more than the homes value.

This plan will help millions of homeowners who refinance or get a home loan modification. Mortgage refinancing and modification have been extremely popular options for homeowners looking to save money, or their home. Take advantage of the low interest rates, and this Government plan, and apply for a mortgage modification or refinance today.

-M Petrone

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