Especially with Obamas housing stimulus plan, refinancing a mortgage to avoid being foreclosed on is rapidly gaining popularity. This plan allows homeowners new refinancing options with interest rates as low as 2%. Homeowners will easily save hundreds of dollars per month.

This mortgage stimulus plan is part of a $75 billion package aimed at bailing out homeowners facing financial problems. The majority of this money will be given to banks and mortgage lenders who approve homeowners under the guidelines of the bailout plan. The lender or bank is taking on less of a risk because most of their risk is covered by the incentive money they receive. This allows them to approve more homeowners than ever for refinancing, especially to avoid a foreclosure.

Here are some of the benefits homeowners will get when refinancing with President Obamas stimulus plan:

-Mortgage payments which do not exceed 31% of a homeowners income.

-The ability to get refinancing if you owe more on a mortgage then your home is worth.

-Homeowners with an ARM (Adjusted rate mortgage) or a home loan, can get refinanced into a new mortgage with better interest rates, terms, or conditions.

-Home loan lengths can be extended up to 40 years.

Now homeowners, even those in a bad financial situation, can get approved for a refinancing easier than ever. On top of that, when lenders and homeowners use the Obama stimulus plan, the savings and benefits to home loan refinancing are bigger than ever. With the stimulus plan, low interest rates, and the high rate of foreclosures, mortgage lenders and banks are eager to help homeowners, as opposed to letting them lose their home.

Right now is an amazing chance for struggling homeowners to take action, and get themselves a more affordable mortgage through refinancing, This plan will save millions of homeowners hundreds of dollars every month, or their home from being lost to mortgage default or foreclosure.

-M Petrone

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