Mortgage Modification Under Obama’s Economic Stimulus Program
During his first few months in office, U.S. president Barack Obama formed a plan that would help to counteract the chaotic economic situation that the country is facing and that would help thousands of hard working homeowners stay in their homes and avoid foreclosure. The trillion dollar economic stimulus package of 2009 allows for mortgage refinancing and other tax credits that can save homeowners tons of money each month and over the life of their mortgage notes.
Under this new legislation, homeowners can elect to refinance their existing mortgages. In the economy of today, many homeowners are struggling just to make ends meet once they have paid their monthly mortgage payments, which have oftentimes tripled in the case of some of the adjustable rate mortgages out there. And with fewer people being employed, major layoffs at big companies, and a higher cost of living, these same homeowners may be finding it more difficult to have their income be sufficient to meet the demands of huge mortgage payments and living expenses for their families. These homeowners have a unique opportunity to refinance to a fixed rate mortgage that they can afford while easing the threat of foreclosure or bankruptcy.
Are You Eligible For Mortgage Modification?
The problem with refinancing prior to this legislation is that many homeowners owed far more to their mortgage lender or bank than their homes and properties were even worth. Most lenders would not dare touch a mortgage under those circumstances. In fact, those homeowners who did not have at least twenty percent equity in their home would not qualify for this type of modification under the old rules. Fortunately, now homeowners have a bigger window to work with, as they can refinance as long as their mortgage amount is for no more than 105% of the current market value of the home. Additionally, all of the loan products that were written by Freddie Mac or Fannie Mae (or one of their holdings) are eligible.
Affordable Mortgage Modification
The home affordability program makes certain that borrowers who refinance can truly afford their payments. No payment amount is approved that is more than thirty-one percent of the gross monthly income of the borrower. And because the interest rate on these new mortgage modifications can be as little as 4.5%, borrowers can see a huge savings over the course of mortgage repayment.
Online Mortgage Modification
Applying online for these types of government sponsored mortgage modifications is the easiest way to qualify fast and start saving now. Online lenders who are qualified to write these mortgage refinance loans have an easy to follow application process that allows you to do most of the paperwork over the Internet and to submit documentation via email or facsimile transmission. Online lenders can also tell you in advance how much your mortgage payment will be once it is modified under the terms of the Economic Recovery Act and your exact rate of interest, which allows you to have a better idea of whether you would benefit from the modification in the first place and in the long run. Online lenders are well-versed in writing mortgages with expedience, which can make a big difference for homeowners who are struggling and need relief now.
Kate Ross has a Master in Finance and has been a university teacher as well as a financial consultant for years. She specializes in Unsecured Loans and also in helping people to get approved for Guaranteed Loans for Bad Credit, home loans, guaranteed loans, bad credit auto loans, guaranteed credit cards among many other financial products. For further information, please visit SpeedyBadCreditLoans.com
Article Source: http://EzineArticles.com/?expert=Kate_Ross
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