Home Mortgage Refinancing the Right Way

Due to the high numbers of homeowners facing foreclosure President Obama and his government have devised a home refinance stimulus package and also some loan modification programs to help. The government and President Obama have begun these plans to help those that are facing foreclosure and having difficulty repaying their loans. As many as 9 million mortgages would be covered by the loan modification plan and home refinance stimulus package and the government is estimating spending $75 billion in the process to help all of the struggling homeowners.

2 main components for Obama's Stimulus Package:

1. Refinance

2. Loan Modification

Let us discuss both components in detail:

1. Home Refinance Stimulus Package

·Using this package the government would have the two biggest and powerful lending agencies, Fannie Mae and Freddie Mac, to refinance homes. Homeowners are buried under their mortgage and are paying more than their homes are actually worth. The condition in order to use this package, it is that the loan be a guarantee be the lender Fannie Mae and Freddie Mac. This condition applies even if you become financially secure and are able to pay on your own.

·There is however a major condition before one can qualify for the refinance stimulus package; the stimulus package is only for homes that are lived in. Those properties that have no one living in them are not eligible for the Obama home refinance stimulus package.

2. Loan Modification Stimulus Package

·President Obama and his administration have provided incentives for lenders that are doing loan modifications for homes that have existing loans. Based on this program homeowners are going to be able to stop foreclosure for good by following the program. The loan modification and refinancing program will reduce high interest rates and decrease it to 2% only. The tenure of the loan will increase in order to reduce the borrowers’ monthly payment and the late fees some have incurred would also be waived.

·Using this loan modification or refinancing program the lender would take care of monthly payments and it would not increase by more than 31% of the borrowers’ monthly income.

-M Petrone
www.HomeRefinancingAdvice.com

Homeowners who are having a hard time paying their monthly mortgage payment, are facing “Financial Hardships”, are facing foreclosure, or want to save money every month should take advantage of President Obamas “Making Home Affordable” plan. This recently enacted plan allows homeowners to get 2% fixed rate home mortgages through refinancing or loan modification. Here is how you can take advantage:

To take advantage of President Obamas plan for yourself, you must meet these guidelines and eligibility requirements:

-Homeowners who are facing financial hardships, and can prove them with documents, can apply for, and most likely be approved for a home loan modification. This will be into a much more affordable monthly payment, depending on your financial hardships and how much those cost you.

-The home which is to be refinanced using this “Making Home Affordable” plan needs to be lived in as a primary residence by the actual homeowner. Homes used as investment, or second properties are not covered under this Government backed housing bailout program.

-With such a bad housing market and economy, homeowners can now refinance or get a home loan modification even if they owe as much as 105% of their homes actual market value. This will assist a lot of homeowners who have been making their payments, yet have seen their home values drop as a result of the tough economy.

-Home loans backed by either Freddie Mac or Fannie Mae are automatically eligible to be modified into a monthly payment which will not exceed 31% of the homeowners gross monthly income. This will help a lot of people who currently spend 50% or more of their income towards their mortgage payments.

This is a great way for millions of homeowners across the country to get back on track with their finances, save money every month, or most importantly save their home from foreclosure. Refinancing and loan modification are now easier and more beneficial for a homeowner than they have ever been before. If you need to save money to save your home, or pay off other mounting debts, use this plan now and start seeing the huge savings every month. You at least should look into the potential savings that you may be able to get by talking to a mortgage lender or bank. Do yourself a favor and act now before it is too late and you lose your home, or this program is gone.

-M Petrone
www.RefinancingCondo.com