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.
Under Obama’s leadership, the federal government has begun a series of steps to help alleviate the burden that the housing boom-then-bust has caused the American taxpayer and also the lenders. The home refinance stimulus package for mortgage refinancing and loan modification can do some amazing things for you if you are in need and qualify. What do you need to know about this package? Here is some needed information for you.There are two main components to the package. They are: 1) refinancing and 2) loan modification. With the refinancing plan, the house must be occupied as the primary residence by the person who took out the mortgage. If that condition is met, Fannie Mae or Freddie Mac refinance the loans of any home that is upside down – that is, the owner owes more than the house is worth.With the loan modification component, lenders and borrowers can agree on different terms for the mortgage. In order to qualify, again, the property must be your primary residence. Also, you must show economic hardship. Once you do that, the lender applies a formula and may lengthen the term of the mortgage up to forty years, reduce the interest percentage, and/or otherwise negotiate terms in order to get the mortgage payment down to no more than 31% of the household’s gross monthly income.With Obama’s home refinance stimulus package, you may be able to keep your home rather than losing it to foreclosure, even if you are unable to meet your current payments.If the bad economy has struck your household and you are having difficulty making your mortgage payments, do not wait until it is too late. Contact a professional who specializes in his type of arrangement or contact your lender directly yourself.
Obama’s Home Refinance Stimulus Package contains 75 billion dollars worth of assistance to struggling homeowners hard hit by the current economy and the failing housing market. Many folks have seen a major reduction in their income due to economic events beyond their control, like reduced hours. But, they have been previously unable to refinance their mortgage because the current market value has decreased, sometimes below what they owe! This decreases the percentage of equity they have, so they don’t qualify for traditional refinancing. So, they have struggled along, managing to make the payments, but not sure how long they can continue.Obama’s Home Refinance Stimulus Package paves the way for them to refinance their home, even if they owe up to 105% of the current market value of the home. The loan must be on a primary dwelling. The payments must have been no later than 60 days late during the last year. The loan is refinanced, keeping the equity intact, at a lower interest rate. These loans are FHA insured, and lenders receive a financial incentive for doing these refinance packages. . The original loan must be owned or serviced by Fannie Mae or Freddie Mac to be eligible.If you have tried to refinance your mortgage at the current interest rates to get some relief for your ailing budget, but did not have enough equity to qualify, take hope. Maybe Obama’s Home Refinance Stimulus Package will be the answer to your situation. Don’t delay; the deadline for applications is June 10, 2010. This federal program may not just save your monthly budget, but eventually save your home from foreclosure.
In order to help and save people from foreclosure, the administration of President Obama has signed a home refinance stimulus package with a fund of $75 billion. This package has two major options, one of mortgage refinance and the other of loan modification. Mortgage refinance is in fact for those people who have acquired home finance loan from either Fannie Mae or Freddie Mac that are two leading home financing companies. If you are associated with any of these two companies, you can get the refinance stimulus package easily and the monthly installment payment can be relaxed up to some extent. The only requirement here is that you must be living in that house and the house is your primary address.The other one included in home refinance stimulus package is the loan modification one which is open for all. Government has provided many banks and lenders with incentives and their main aim is to help worried homeowners stay away from foreclosure. But before applying for a loan modification plan you must make some beforehand preparations. This is important so that your loan gets passed easily and quickly. There are many professional that are there to help you fill up the form in acceptable manner and help you submit the exact documents so that your loan gets approved without difficulty.You can take the help of search engine and you will find numerous websites that are ready to help you getting this loan. But here you must be careful and conscious so that you choose the right one. If your loan is approved under this package, you can get a period of up to 40 years and the rate of interest as low as 2% for your repayment. There are some house owners that are even provided with debt forgiveness or are granted with late fee submission too. So the most important thing is that you provide significant documents and correct information.While filling up the form you must provide with accurate information and you must have a copy of it ready at hand so that when you get a call from the refinance office, you don’t get confused or hesitate while giving away your information. You must be confident and since this is your right you must have it. The banks and the lenders have to do their duty and provide loans to only those who are really needy and want to avoid foreclosure in order to save their homes.
Factory closings, unpaid furloughs, companies going bankrupt, layoffs-even if you still have a job, it’s likely that your company is striving to cut costs by limiting overtime and deleting benefits. The current financial crisis has hit everyone hard, especially homeowners. Due to the housing bubble, many people owe more money on their homes than they are currently worth. Others are simply having trouble meeting their monthly mortgage payments. President Obama’s home refinance stimulus package offers two different solutions for homeowners.The “Home Affordable Refinance” plan is the right pick for you if you are still current on your payments, but need to refinance with a lower interest rate. This will allow you to make lower monthly payments, but still increase the equity you have in your property. The principle amount you owe will be the same, only the interest rate will change. The home must be your primary residence, and you only have until June 10, 2010 to arrange for this refinance plan.The “Home Affordable Modification” plan is for you if the monthly housing expenses for your primary residence are more than 31% of your gross income and you can no longer afford your mortgage payments. Whether it’s because of a job loss or medical expenses, this part of the home refinance stimulus package will allow you to work with your bank to modify the terms of your mortgage. And in some cases, for every month you makes your payment on time, the Treasury Department will actually make a payment toward the principle of your loan-as much as $5,000 over 5 years! This mortgage modification plan is available until December 31, 2012.Yes, the federal government is trying to help you pay off your mortgage; but in order to claim your own home refinance stimulus package, you need to find out more about it.
Obama’s government has come up with home refinance stimulus package and loan modification programs to help all the needy owners in avoiding foreclosure. This program is designed specifically for all the borrowers who are facing financial hardships as they are not in a condition to repay the loan. The home refinance stimulus package and loan modification would cover as much as 9 million mortgages and the government would spend $75 billion for helping the homeowners.Obama’s Stimulus Package has 2 main components:1. Refinance2. Loan ModificationLet us discuss each one of these components in detail:1. Home Refinance Stimulus Package· In this program the two most powerful mortgage lending agencies of the government Fannie Mae and Freddie Mac would refinance the home loans of all the owners who owe much more amount to the bank than the actual value of the house. The only condition for this package is that the mortgage must be a guaranteed one by Fannie Mae and Freddie Mac, and then even if you are strong enough to pay the entire extra amount, you can gain advantage of the program.· But there is one major condition joined with refinance stimulus package and that is; the offer is only valid for the properties which are used for residential purpose. Any property which is lying like a building and no one is living inside, will not qualify for Obama’s home refinance stimulus package.2. Loan Modification Stimulus Package · There have been special incentives that Obama’s government is going to provide to all the lenders for doing loan modification on the existing home loans of the borrowers. According to this program, the homeowners can get rid of foreclosure by getting it done. The main features of this program would be; interest rate would be reduced and it can go down to 2% only, tenure of the loan would be increased to reduce monthly payment amount and borrowers will get waiver of late fees.· With loan modification, lender will also take care of the total monthly payments that a borrower is making and it would not increase than 31% of the total monthly gross income.