Get 2% mortgage rates by refinancing or getting a home loan modification with Obamas “Making Home Affordable” plan. This plan is easy to use, and millions of homeowners are eligible. Here is what you need to know on who is eligible, and the benefits:

-Mortgage refinancing and home loan modification are available to homeowners facing financial hardships or problems. These are financial situations which are out of the homeowners control. Things such as losing a job, hospital bills, or an increasing ARM loan will help a homeowner get approved.

-Fannie Mae and Freddie Mac mortgage holders can use this plan to get an instant approval for a home loan modification. This modification would make the payments lower than 31% of a homeowners gross monthly income. To get to this goal, a mortgage lender or bank can lower interest rates, or change the terms and conditions of the mortgage.

-Homes which have dropped in value are also assisted by this housing stimulus plan. Homes which have dropped by 15% or more in their value are targeted by this plan. This saves many homeowners whose neighborhoods have been wrecked by foreclosures, unemployment, and other economic problems.

-Before this plan, 20% cash or equity in your homes loan was typically needed to get approved for refinancing from a traditionally mortgage lender. However, mortgage lenders and banks participating in this plan have changed their policies, and to the homeowners advantage. Now homeowners can owe as much as 5% more than the properties worth, and still get approved for a refinancing which will actually help them.

-All closing costs and fees are paid for by the Government. No money is needed from a homeowner to take advantage of this plan.

-M Petrone

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