President Obama knows the hardships the average homeowner is facing. This is why he has enacted the "Making Home Affordable" plan. This plan will allow homeowners a chance to get a lower monthly home loan payment through refinancing or home loan modification. Millions of homeowners are eligible to use this plan. Will it work for you?
This plan has over $75 billion in funds to assist homeowners. However, most of this money will actually be going to mortgage lenders and banks. The money will be used to minimize the risks of the lenders who approve "at risk" or homeowners facing "financial hardships". This way, with their risks minimized, the lender will be able to approve more homeowners, and people who would never have gotten approved if it were not for this housing bailout plan.
Homeowners need to meet some requirements in order to be approved for Obama making home affordable stimulus plan: The home to be refinanced through this plan needs to be the main residence of the homeowners. Second, vacation, or rental properties are not eligible to use Obamas plan. The remaining balance due on the mortgage must be less than $729,500. It could have, at one point, been higher, but as long as the remaining balance is less than that, it will work.
The government incentives for the banks and lenders will include up to $3500 for participating in the program and also the lenders and banks will be matched dollar for dollar in other circumstances. Some homeowners will also be eligible for $5,000 to help ease any other debts and outstanding balances. Those homes that were purchased for second homes or as investments however are not eligible for participation in the plan. This stimulus plan will also call for Fannie Mae and Freddie Mac, both government run lenders, to allow millions of struggling homeowner to refinance.
Under no circumstances will refinancing under the Obama plan reduce the principal balance of the loan. You can, however, save money if you can lower interest rates.
I hope these facts are helpful as you consider the best options for your situation. The best advice anyone can receive is to do their due diligence, and weigh all the facts before making any decisions.
This plan has over $75 billion in funds to assist homeowners. However, most of this money will actually be going to mortgage lenders and banks. The money will be used to minimize the risks of the lenders who approve "at risk" or homeowners facing "financial hardships". This way, with their risks minimized, the lender will be able to approve more homeowners, and people who would never have gotten approved if it were not for this housing bailout plan.
Homeowners need to meet some requirements in order to be approved for Obama making home affordable stimulus plan: The home to be refinanced through this plan needs to be the main residence of the homeowners. Second, vacation, or rental properties are not eligible to use Obamas plan. The remaining balance due on the mortgage must be less than $729,500. It could have, at one point, been higher, but as long as the remaining balance is less than that, it will work.
The government incentives for the banks and lenders will include up to $3500 for participating in the program and also the lenders and banks will be matched dollar for dollar in other circumstances. Some homeowners will also be eligible for $5,000 to help ease any other debts and outstanding balances. Those homes that were purchased for second homes or as investments however are not eligible for participation in the plan. This stimulus plan will also call for Fannie Mae and Freddie Mac, both government run lenders, to allow millions of struggling homeowner to refinance.
Under no circumstances will refinancing under the Obama plan reduce the principal balance of the loan. You can, however, save money if you can lower interest rates.
I hope these facts are helpful as you consider the best options for your situation. The best advice anyone can receive is to do their due diligence, and weigh all the facts before making any decisions.
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