Since there are millions of homeowners struggling to stay in their homes President Obama has enacted a mortgage stimulus plan that will help just that. The plan offers homeowners the opportunity to refinance their current mortgage loan into a lower fixed 4.5% rate. This plan will help struggling homeowners save a few hundred dollars a month.

The “Home Affordability Plan” targets those people who are in need of short term help. There are also a number of options for those people with not so great credit.

Those facing some hard financial times can find loan modification programs that can be utilized. Financial hardship can be caused by a number of different things decrease in income, job loss, medical emergency or other debts. This new mortgage modification plan helps homeowners catch up on their bills and mortgage payments. The new plan limits the payments to 31% of the homeowner’s monthly income. Along with limiting the mortgage payments to 31% the borrowers own debt can not exceed 51% of their total monthly income.

The President along with Federal Reserve are working to lock in a fixed mortgage rate of 4.5% for all current and potential homeowners.

If possible it is recommended getting a mortgage counselor, however if you can not afford one you can get one from the HUD. The HUD can appoint a counselor free of charge to act as your represent when approaching banks or lenders.

Homeowners everywhere have seen their homes value drop by as much as 15% or more due to this mortgage crisis. Those who have had their homes drop in value are eligible to refinance into a fixed 4.5% interest rate.

The economy is in trouble currently and President Obama is well aware of the situation. The government has $75 billion dollars set aside to help the housing market and allow homeowners to refinance their mortgage. The number of foreclosures is higher than ever before and the housing market is suffering greatly. This mortgage modification program was enacted in hopes of saving the housing market and raise the price of homes all across America. Take advantage of this new mortgage modification plan enacted by President Obama.

-M Petrone

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