If your struggling to pay your mortgage, and would like to refinance, Obamas plan can help you. This plan allows easy refinancing and mortgage modification options for homeowners who are facing financial hardships. Do you owe more than you home is worth? Would you like to see interest rates reduced as low as 2%? Want a mortgage payment which is half of what you pay now?

These options are all possible with Obamas stimulus plan. This plan calls for homeowners and mortgage lenders to work together to save money, and homes from being lost. Over $75 billion in funding is available for this plan, and millions of homeowners are eligible.

This money is the key to how this plan works. Most of this cash will be given to mortgage lenders and banks who approve homeowners who need help. With their financial risks reduced, lenders, brokers, and banks, can approve more homeowners than ever before. A lot of homeowners who would never have been approved for refinancing or home loan modification are now able to get one. This is perfect timing as well, as currently, foreclosures and mortgage defaults are at all time highs.

The guidelines for this plan call for homeowners to have a monthly mortgage payment which is not over 31% of their gross monthly income. This will be a big reduction in payments for the average homeowner, especially struggling homeowners. To make this payment amount a reality, mortgage rates can be reduced to as low as 2%, and mortgages can be lengthened to 40 years. While 31% may sound like a lot of money to some homeowners, many struggling homeowners pay 50% or more towards their monthly home loan. A near 20% reduction in payments would add up to huge savings in the long run.

Homeowners should look into refinancing or mortgage modification using this Government backed mortgage bailout plan. Overall, millions of homes will be saved, the housing market will benefit, and the overall economy will see positive gains from this stimulus plan.

-M Petrone

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