There is a $75 billion Government housing stimulus which allows homeowners a chance to get a more affordable home loan. Refinancing and home loan modification are very popular options today for homeowners who need to save money, or their home. Here are some of the biggest points of this Government plan:

-Homeowners facing “Financial Hardships” such as a loss of job, reduced wages, hospital bills, bad mortgages, and pretty much anything out of your control, can get refinancing or home loan modification. This will lower the monthly payment for the homeowner, allowing them to pay off other debts and bills.

-Homeowners must have signed and closed on the mortgage before January 1st 2009. Also, the remaining balance of the home loan must be for less than $729,500.

-Homeowners who have a mortgage backed by Fannie Mae or Freddie Mac are automatically eligible for a home loan modification. This modification will lower the monthly mortgage payments to at most 31% of a homeowners gross monthly income. A lot of people pay 50% or more towards their mortgage, a 20% reduction would be huge.

-The home must be lived in as a primary residence by the mortgage holder. This plan does not help homeowners with their second property, investment property, or other homes.

Overall, this plan provides many benefits to the average homeowner. Getting approved for a money, or possibly home, saving refinancing or modification plan is easier than ever. Instead of foreclosures and mortgage defaults, the lenders and banks would rather help you save your home. Take action now and you could easily start saving hundreds of dollars every month.

-M Petrone

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