Interest rates can be lowered to 2% and homeowners can change the length of their mortgage, all in an effort to lower mortgage payments to an affordable level. The "Making Home Affordable" plan from President Obama allows homeowners a chance to refinance or get a home loan modification and save their home from being lost to foreclosure or mortgage default. Here is how:

Recently, a $75 billion stimulus plan was announced that is aimed at helping homeowners. This plan, is called the "Making Home Affordable" plan and millions of homeowners are eligible to use it to get help with their home loan. The help is available because of the money and how it is being used. Most of the billions of dollars in stimulus funding will be given to mortgage lenders and banks who help homeowners, and follow the guidelines of the stimulus plan. This money will enable the mortgage lenders to take on more struggling homeowners than they would be able to with out an incentive to cover any potential losses.

When mortgage lenders and banks follow the stimulus programs guidelines, homeowners who are struggling will benefit in the following ways:

-Homeowners can refinance even if they owe more on the loan than the homes actual market value.

-Homeowners can automatically qualify for mortgage modification into a better more affordable monthly payment if their home loan is backed by either Fannie Mae or Freddie Mac.

-Homeowners who have seen the value of their home either remain the same or drop since purchasing it can now more easily qualify, and get approved for, mortgage refinancing.

-Homeowners who have lost their jobs or are facing other financial hardships will have an easier time getting either mortgage refinancing or modification.

-The mortgage modifications a homeowner gets from this plan will have a monthly payment that does not exceed 31% of their gross monthly income.

The millions of homeowners who are at a serious risk of losing their homes will benefit from this plan. Many new options now exist for people in all situations to get the help they need, regardless of the situation they are facing with their home loans. Make use of this plan and save a lot of money, or your home.

-M Petrone

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