President Obama will allow homeowners to refinance their mortgage into a fixed rate 4.5% home loan. Millions of homeowners are eligible for this refinancing stimulus plan. The rush to refinance is on and using this "Home Affordability Plan" homeowners can save hundreds every single month.
The economy is struggling any everyone is feeling its effects. Late mortgage payments are becoming more common as homeowners save every penny they can to try to make that home loan payment. Foreclosures are happening at a record pace, which hurts the housing market even more. The demand for housing just is not their like it used to be and therefore home prices have dropped significantly. Lots of homeowners now have a mortgage that is worth more than their home is. Others have lost their income, reduced wages, or are facing other high debts. Luckily, President Obama has released this mortgage stimulus plan which will help homeowners refinance or modify their home loan and save hundreds per month.
President Obama believes that everybody should be able to get a 30 year fixed rate 4.5% mortgage. Current homeowners can refinance their mortgage into this 4.5% fixed rate. This would help stem the tide of foreclosures and mortgage defaults. As a result, home prices would rise again and the market would stabilize. Also, the biggest thing is that millions of homeowners would save hundreds every month by taking advantage of this mortgage stimulus refinance plan from Obama. This money can be used to pay down other debts, make extra mortgage payments, or just to save. So far, Obama has been able to give cash incentives to mortgage lenders and banks if they take on higher risk borrowers for refinancing or modification. This means that it is easier than ever to refinance a mortgage and start seeing the savings.
Here, I have listed some of the requirements needed to be eligible for the mortgage refinancing stimulus plan from Obama:
- The home must be lived in by the homeowner and can not be a second property or an investment property.
- The mortgage must not exceed the value of the home by over 5%. So, you can refinance even if you owe up to 105% of your homes worth.
- Mortgages insured or owned by Fannie Mae or Freddie Mac are automatically eligible for a mortgage modification plan. Although, the homeowner will need to sign a statement of "Financial Hardship" which can be a loss of income, or other debts and bills you have.
- The mortgage must have been signed and closed on before January 1st 2009.
This mortgage refinance stimulus plan from Obama will help homeowners who are looking for a way to reduce their monthly expenses. Obama estimates that over 9 million homeowners can save money using this plan. Check with your lender or bank and start the process of refinancing your home loan and save hundreds of dollars every month.
To know more about Federal Mortgage Refinance Program and to check if you qualify:
www.refinanceitt.com/mortgage-refinance-application.php
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