There is help available for millions of struggling homeowners. The “Making Home Affordable” stimulus program is designed to help financially struggling homeowners get a better mortgage, and avoid losing their home. Using this plan is easy, here is how:

-Homeowners with a mortgage that is more valuable than their home, by up to 5%, can get the approval they need to get into a better mortgage through refinancing. This would not have been easily possible before this plan existed.

-People with a mortgage from Freddie Mac or Fannie Mae are in luck as well. This plan calls for those mortgages to be automatically eligible for a modification. A mortgage modification will favorably change the terms, rates, and conditions of a home loan, enabling homeowners to save money. This new mortgage payment is not allowed to exceed 31% of a homeowners income every month. To reach this, interest rates can be reduced, as low as 2%, and the length of a home loan can be extended.

-Homeowners who are going through tough financial times, are not forgotten about. Financial hardships, which can include, losing a job, reduced hours or wages, hospital bills, and just about anything which costs money, but is out of the control of the homeowner, are not a problem when looking for refinancing. In the past, homeowners facing these problems would most likely get a mortgage modification, which could be good, but not as good as refinancing. When you refinance, your getting an entire new loan, with better rates, terms, and conditions. Modification is just changing the terms of your existing loan.

This plan makes getting a mortgage refinancing easier than ever. Many homeowners can benefit from a refinance, and should use this plan to make it happen. Take care of your financial future, and look into the potential savings for you should you decide to use this stimulus program.

-M Petrone

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