President Obama’s Stimulus Bailout Allows 4.5 Percent Home Mortgage Refinance

0
105

The Obama homeowner bailout program is a mortgage stimulus plan which will allow homeowners a chance to refinance their current home loan into a new one which would be locked into a 4.5% fixed rate. Under this plan, an estimated 9 million homeowners will be able to refinance or modify their mortgage and save hundreds of dollars every month.The government will spend over $75 billion on this “Making Home Affordable” plan and ideally help to re-stabilize the housing market. This money will be used in part to give cash incentives to banks and mortgage lenders who participate in this program and refinance homeowners under its guidelines. With the cash incentives, lenders and banks are more likely to approve a greater number of refinance or modification applications, and help curb the stem of foreclosures. Things that would be typically needed in order to refinance a home, such as 20% equity, are no longer needed.This plan will help homeowners by:- Easing restrictions on refinancing or home loan modification by using cash incentives to entice mortgage lenders and banks to approve more applications.
– President Barack Obama & the Federal Reserve would like to see home mortgage interest rates set at a fixed 4.5% for all homeowners and new home buyers.
– Homeowners who have a mortgage backed by Freddie Mac or Fannie Mae are automatically eligible for a loan modification if they are going through any financial hardships. Under this plan, the monthly mortgage payment, after modification, may not exceed 31% of the homeowners gross monthly income.
– Streamlined processes are in place to enable homeowners facing foreclosure a chance to quickly refinance and potentially save their home.
– If the homeowner has seen the value of their property fall by 15% or more, than refinancing into a fixed rate 4.5% home loan is now possible. This will help a lot of homeowners who have seen decreasing property values since this mortgage crisis has begun.Under these guidelines set in place by President Obama, millions of homeowners will save a lot of money by refinancing their home loan. This will help the over all housing market and restore confidence, curb foreclosures, and save homeowners a lot of money. Refinance your home now and see the savings start, or more importantly, possibly save your home.