Homeowners all across the country are facing financial hardships and struggling to make their home loan payments every month. This has led to a bad housing market, and a record high number of foreclosures and mortgage defaults. In an effort to help homeowners, the Obama administration launched their “Making Home Affordable” plan. This stimulus plan is designed to help millions of people get help with mortgage refinancing or modification. Here is some advice for homeowners who are looking to refinance a mortgage in 2010.

Homeowners have enjoyed near record low mortgage interest rates throughout 2009. These low rates are due to a struggling housing market, a bad economy, Obamas stimulus program, and a high number of people losing their home. While interest rates will remain low in 2010, they are expected to rise a little. However, refinancing will still be beneficial for millions of people in 2010, even with a slight mortgage rate increase.

I also think homeowners will start taking more advantage of President Obamas stimulus programs and get refinancing or mortgage modification and keep their home. This will lead to a drop in foreclosures, an increase in home values, and a better overall housing market. However, this is what will also cause the slight increase in interest rates. While it does not sound good, it will be a good indication that the economy is getting better.

Overall, refinancing and mortgage modification in 2010 will help many people save money, their homes, or both. Many people will still benefit from Obamas stimulus, and many homeowners will see their home values rise. While a few homeowners will lose any benefits from refinancing or mortgage modification due to the slight rate increase, most people will still greatly benefit.

-M Petrone

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