| Home Mortgage Refinance: The Making Home Affordable Plan May Help |
| Articles - Mortgage |
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Are you one of the millions of Americans who has been contemplating a home mortgage refinance? Perhaps you have lost your job, or had to take a cut in pay. You might not be able to sell your house in the current real estate market and are now facing foreclosure. These are all the scenarios for which President Obama enacted his "Making Home Affordable" plan.
Are you one of the millions of Americans who has been contemplating a home mortgage refinance? Perhaps you have lost your job, or had to take a cut in pay. You might not be able to sell your house in the current real estate market and are now facing foreclosure. These are all the scenarios for which President Obama enacted his "Making Home Affordable" plan. About the "Making Home Affordable" Package The basics of the "Making Home Affordable" plan rest on allowing mortgage lenders to loosen restrictions on the options for a home mortgage refinance. Lenders are also required to modify the terms of an existing loan in certain situations. Anyone who has been adversely affected financially due to the economy may be eligible to benefit from this plan. The president's goal in enacting this piece of legislation was to ultimately provide a positive effect on the real estate market. He is also hoping that the millions of citizens negatively affected by the recessionary economy will find relief, and be able to avoid foreclosure. As you may have seen in recent news reports, Making Home Affordable was a major part of the $75 billion bailout plan Congress approved. Mortgage lenders received the bulk of cash incentives in order to cover modifications to current loans and also to approve new mortgages. For homeowners or buyers, this has opened up many opportunities and increased competition from lenders for their business. Is the Making Home Affordable Plan Appropriate For You? Were you considering a home mortgage refinance and realized that it did not make sense financially or impossible because of excessive restrictions from the mortgagor? With this new legislation, all that may have changed for the better. According to the package, homeowners are eligible to modify the terms of their mortgage so that the monthly payment equals 31% or less of their gross income. Because of economic woes and the failing real estate market, many Americans are now paying up to 50% of their monthly income for their home alone. Banks and mortgage lenders have received a set of guidelines as part of the Making Home Affordable plan. They can offer a 2% mortgage rate, if that will help reduce the ratio of payment to income. Cash incentives from the government will help pay for this reduction. If you are seeking a home mortgage refinance under these terms, you must be aware of the qualifications. These include being current on your mortgage payments now and for the previous 12 months. If any of your payments fell more than 30 days behind, then you are not eligible. You may also need to sign a Financial Hardship letter which states the reason for your loss of monthly income. Any homeowner who has seen their property devalue by more than 15% could receive the 2% interest rate, as well as anyone who financed their home through Fannie Mae or Freddie Mac. Under the terms of the Making Home Affordable package, a home mortgage refinance might now be a very realistic proposition, as well as a sound financial decision. Act now to find out what your options are and if you qualify to save thousands of dollars annually with a lower mortgage payment. DISCLAIMER: This article is provided as information only and is not to be taken as financial advice. At mortgagerefinancing.com you can get professional help with your home mortgage refinance. Grab a totally unique version of this article from the Uber Article Directory |