Homeowners are rushing to refinance or modify their mortgages because of President Obamas “Making Home Affordable” plan. This $75 billion mortgage bailout will help millions of homeowners get a refinancing or loan modification into a better, more affordable, monthly payment. This plan will also help people who are in foreclosure or who are at risk of losing their home. Here is why so many homeowners will benefit from these new programs.

The thinking behind these mortgage programs is that if a homeowner can afford there monthly payments, they will make them. With the high rate of foreclosures and mortgage defaults occurring right now, this plan is a great way for homeowners to save money, their home, or both. With this plan, a homeowner will be able to refinance or modify a mortgage into a payment that is no more than 31% of their gross monthly income. This 31% also includes taxes, home dues, insurance, and other costs. This will be a drastic reduction in payments for homeowners all over the country. Even homeowners with bad credit or an upside down mortgage will find it much easier to get help than it has ever been before.

The help is easy to get because of the $75 billion in Government funding. This money is being given to lenders and banks who help homeowners by following the guidelines of the mortgage bailout programs. This money acts as a financial back up and an incentive to help the lenders and banks help even more homeowners. With this money, homeowners with all types of financial hardships will get the help they need. An estimated 8 million people can use this plan for themselves, and save their home, get a better mortgage, save money, or all three.

Help is available for homeowners. Getting it though is up to you. Contact your mortgage lender or banks and see what options are available to you. The help is there if you need it.

-M Petrone

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