The Obama administration has implemented a Home Refinance Stimulus Package to revive the sinking housing market and prevent the continued onslaught of foreclosures. Maybe you qualify to refinance your overwhelming mortgage.President Obama has made helping the millions of struggling homeowners a priority in his Home Refinance Stimulus Package. Banks are being given financial incentives to refinance and modify existing loans and stem foreclosure rates. There are two tools available as homeowners seek to rework their mortgages; let’s see what they are and if you meet the approval guidelines.The two options available through the stimulus plan include:o Mortgage Refinance: This option is for the homeowners who are not yet delinquent on their monthly mortgage payments, but owe more than the current market value on their house. Previously, refinance options were only available to those with 20% equity in their home. But the Home Refinance Stimulus Package makes refinancing more available if you qualify. You cannot have been more than 30 days late in the last year. The loan must be a Fannie Mae or Freddie Mac backed loan, and it is only applicable to your first mortgage. You lender must agree to accommodate your second mortgage. The home has to be your primary residence, the place where you live.o Loan Modification: This option is a landmark opportunity initiated by the Obama Administration which provides the framework for delinquent loans to actually be completely reworked. The goal is to give assistance to those facing foreclosure and thus help rescusitate the plunging housing market and overall economy at large. This option seeks to lower your monthly payment to an affordable amount that will allow you to successfully meet your mortgage obligations. These also must be Fannie Mae or Freddie Mac loans and your primary residence. Your loan must have been written on or before January 1, 2009 and your payment, along with taxes, insurance and homeowner fees, must be more than 31% of your gross monthly income.
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