Home Refinance Stimulus Package – Obama’s Stimulus For Mortgage Refinancing and Loan Modification

admin — Thu, 29 Apr 2010 15:39:41 +0000

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. Refinance

2. Loan Modification

Let 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.

By: Luke Cambell

Bad Credit Mortgage Refinancing With the Government Stimulus Plan

admin — Sat, 09 Jan 2010 00:34:06 +0000

Bad credit is no longer a reason not to apply for mortgage refinancing. New Government programs allow millions of homeowners in all situations the chance to get approved for a mortgage refinancing or modification into affordable monthly payments. Bad credit, bad mortgage, a home that is losing value, or other financial problems can actually help a homeowner get approved.

This is because of the fact that over $75 billion in funding is being given to mortgage lenders and banks who approve a homeowner who is at risk of losing their home. This means that banks and mortgage lenders have eased some of their mortgage restrictions so that they can help even more people. They have done this because for every homeowner they help with getting approved for refinancing or modification, they receive incentive money from the Government.

This money helps minimize risks, and allows the banks and lenders the chance to temporarily alter their lending policies to help the most people they can. There are also additional incentives that lenders or banks get for every year, up to 5 years, a homeowner is able to make their mortgage payments on time and in full. This is an extra incentive to truly help homeowners get the lowest possible monthly payments possible. This also means that homeowners with bad credit, or other financial problems, can get the help they need to save their home, or a lot of money, easier than ever.

Homeowners who are barely able to afford their home loan, are facing foreclosure, or are thinking about short selling, should consider a mortgage refinance. With the Governments stimulus plan in effect, an estimated 8 million homeowners can get the help they need. This is a never before seen attempt to help homeowners, and entire neighborhoods, recover from the bad economy, and worse housing market. Take advantage of these great new options available to all types of homeowners and refinance or modify your home loan today.

By: Michael Petrone

Bad credit refinancing » Incentives

Home Refinance Stimulus Package – Obama’s Stimulus For Mortgage Refinancing and Loan Modification

Bad Credit Mortgage Refinancing With the Government Stimulus Plan