President Obama and the Government have enacted their home refinancing and modification stimulus plan. This plan will allow millions of homeowners the chance to refinance or modify their current home loan into a new 2% fixed rate mortgage. Taking advantage is easy, and the savings easily add up to hundreds per month.There are 2 Main Parts to Obamas Stimulus Package:1) Home Mortgage Refinancing Assistance.2) Home Loan Modification Assistance.Here are some details on each of these Components to Obamas plan:1.) Home Mortgage Refinancing Stimulus PlanUsing this plan homeowners are able to refinance through 2 of the biggest mortgage lenders in the country, Fannie Mae and Freddie Mac, even if their mortgages are worth more than the actual value of the home. The only eligibility requirements are that the home loan is financed or insured by Freddie Mac or Fannie Mae. Even if you are financially secure enough to be able to pay the monthly mortgage payment you can still take advantage of this plan.Another condition of this plan is that the home to be refinanced is actually the homeowners primary residence. This refinancing stimulus plan from Obama only applies to primary residences not investment, or second properties.2.) Home Loan Modification PlanThe Obama administration will be giving cash incentives to mortgage lenders who approve loan modification for “at risk” homeowners. Using this program, the homeowner will be able to avoid foreclosure, and get their home loan into a fixed 2% interest rate. Homeowners would also get to waive any late fees they have and their will be no closing costs associated with a home loan modification using this plan. Also, homeowners who take advantage of this plan will be able to get a mortgage payment that does not exceed 31% of their gross monthly income.Refinancing a home loan using this plan will no doubt save millions of homeowners hundreds of dollars every single month. Taking advantage of this plan is very easy to, and even encouraged by Obama. Homeowners can use this to save their money and improve their standards of living. Also, this plan should restore some consumer confidence in the housing market.
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