Homeowners with a mortgage from Fannie Mae or Freddie Mac can get a home loan modification thanks to Obamas stimulus plan. This “Making Home Affordable” stimulus plan is designed to help homeowners save money on their mortgage, avoid foreclosure, or get a better home loan. Here is how it works:

The mortgage stimulus plan from President Obama calls for all homeowners who have Freddie Mac or Fannie Mae as their lender to be approved for home loan modification. The new monthly payment which results from getting this help with your mortgage will not exceed 31% of your monthly income. Currently, many homeowners pay much more than 31% of their income towards their mortgage, and a savings of 10% or more would be huge savings. To achieve this new monthly home loan payment a few things can happen:

-Mortgage rates can be reduced to as low as 2%

-The length of the mortgage can be extended

-Switching a homeowner from an ARM (Adjusted rate mortgage) to a stable, fixed rate mortgage.

One of these, or a combination, will be used to help homeowners get a lower monthly mortgage payment. The hopes are that after this, homeowners can avoid foreclosure and get their finances in order. This plan gives hope to a lot of homeowners who would have lost their home. Millions of people have a mortgage with either Fannie Mae or Freddie Mac, and now, the struggling ones can get help. Taking advantage of this plan is easy. Contact your lender and ask about the Presidents “Making Home Affordable” plan.

-M Petrone
www.RefinancingCondo.com

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