The “Homeowner Affordability and Stability Plan” is a $75 billion program which was enacted by President Obama earlier this year. This plan will help struggling homeowners get affordable monthly mortgage payments by offering them new refinancing and home loan modification options. Using this plan, an estimated 8 million homeowners can get help with lowering their payments, getting better interest rates, and avoiding losing their home.

This is all possible due to the cash incentives that will be given to mortgage lenders and banks who follow the plans rules, and help homeowners. This money will also provide some financial security so the lenders and banks are able to help more homeowners, with less financial risk to them. With so many homes at risk of being lost, and the housing market in bad shape, no one wants to deal with a foreclosure. In a bad economy and housing market, a foreclosure can turn into a liability and offer no profit for the lender or bank. That fact, plus the Government stimulus program, make right now a great time for getting help with a home loan.

The thought behind this program is that regardless of the homes worth, if a homeowner can afford the payments, they will, and keep their home. That is why a major part of this program says that a homeowners monthly mortgage can not exceed 31% of their gross monthly income. This payment includes all taxes, insurance, and any fees associated with home ownership. This will be a huge reduction for many people, and may be just what they need to prevent their home from being lost. To meet this 31% threshold, a mortgage lender or bank can reduce interest rates down to as low as 2%, extend the length of the home loan, or both.

Another big thing that homeowners will get help from is that when using this plan, a home can actually be worth less than when it was purchased, and the homeowner can still get help. This will be a huge relief for many homeowners who have seen the value of their house drop in this bad economy. Many homeowners bought a home with an ARM loan thinking that it would rise in value, and they could get a mortgage refinance. However, it has not worked out according to plan for millions of homeowners who are now stuck with an ARM loan that is increasing.

Getting help for yourself using this program is not hard to do. Contact a mortgage lender or bank and see what the benefits of this plan could do for you, and your home loan. Help is available, go out there and get it.

-M Petrone
http://www.RefinancingCondo.com

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