Obama Mortgage Stimulus: How Does President Obama’s Economic Stimulus Package Affect Your Mortgage?
Homeowners now have the chance to get a fixed rate 2% mortgage through refinancing or home loan modification. This is possible because of President Obama mortgage stimulus plan. This plan helps struggling homeowners get a more affordable mortgage, and save their home from foreclosure or default. Here is some things you need to know to use this plan for yourself:
Here are the key features of the Stimulus Package: Refinancing, in the past, was only available to homeowners that had at least 20% equity in their homes. However, with the quick and severe drop in home prices the new Stimulus Package allows those with current mortgage values which are 105% greater than the current home value to be eligible for refinancing regardless of whether they have home equity.
As one of the first causalities of the economic downturn, homeowners with Fannie Mae and Freddie Mac have found little financial hardship relief. With the Stimulus Package, various methods of loan modifications are available with both companies. The government has lowered the interest rate from 6.5% to 5.16%. This will provide further assistance by allowing home owners to take advantage of the lower rate when they undergo the loan modification.
Those who are at greatest risk for foreclosure can modify their loan such that their monthly payment will not exceed 31% of their gross monthly income. This will allow the homeowner to have a much greater amount of spendable income that can be used to stimulate the economy.
Overall, this plan allows millions of homeowners a good chance to save their home, and a lot of money. Homeowners who are facing any type of financial hardships should take action and apply for refinancing or home loan modification now. The longer you wait, the harder it will be to make things better. Home refinancing can save you thousands or if it is done the wrong way cost you thousands. Greedy mortgage lenders will try to suck you dry if you let them. Learn how to properly refinancing a home mortgage and walk away happy and with more money.
Learn more about Obama Mortgage Relief Plan Qualifications.
