Refinancing a mortgage in 2010 will be very beneficial for millions of homeowners. The biggest thing helping homeowners is President Obamas “Home Affordability” stimulus plan. This plan will help millions of people get a mortgage refinancing and save money, their home from being lost, or both. Even people with bad financial situations can easily get help from Obamas plan. Here are some important things to know if you plan on refinancing a mortgage in 2010.

Many people have fallen behind on their home loan payments, or are facing financial problems that make paying very hard to do. This is due to a bad housing market, and a terrible economy. However, since so many homeowners were losing their home and needed help, President Obama enacted a stimulus plan to help. This stimulus is backed with over $75 billion dollars and it is all dedicated to helping struggling homeowners.

This money will be given to a few selected mortgage lenders and banks who are authorized to offer stimulus mortgage refinancing options to homeowners. To get the money, lenders and banks must abide by the rules of Obamas stimulus program. Some of the biggest benefits homeowners get from these rules include:

-Mortgage payments that will not be more than 31% of a homeowners gross monthly income. This includes all home insurance, taxes, and other home fees. Many homeowners will see a 15% or more reduction from this single benefit alone.

-Mortgage interest rates than can be as low as 2%. This is in order to keep the monthly payments to a low enough level according to the stimulus. Also, a home loan can be extended in length in addition to a reduced interest rate to lower payments even further.

-Homeowners who owe up to 25% more on their mortgage than their homes actual worth can still get help. Before this stimulus plan a homeowner needed around 20% equity to get a good refinancing deal, now though things have changed to address the problems homeowners are facing.

-People with bad credit or financial hardships like a loss of job, hospital bills, bad debts, or other issues can get help using this plan. Before this plan existed homeowners with these financial problems would have a hard time finding refinancing help.

Homeowners all across the country can get help from Obamas mortgage stimulus plan. Never before has such a large program been put into place to assist homeowners. Do not lose your home to foreclosure or mortgage default, take action now and refinance your mortgage with Obamas bailout. Get the help you need now.

-M Petrone

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