| Click on our Advertisement |
|
|
Under the direction of newly elected President of the United States, Barack Obama, homeowners across the nation are receiving the relief that they need from the high interest mortgages that threaten to ruin them financially. President Obama and his advisors have crafted a plan that is custom designed for the homeowner who is struggling in the current economic situation that our country is facing. With housing prices at rock bottom levels and market values crashing, there have been an all time high when it comes to homes foreclosed. There is rarely anything as traumatic as losing your home to foreclosure, especially when you have so much invested in it and having a foreclosure notation on your credit file can ruin your credit for many years into the future.
For all of these reasons, the Obama stimulus plan for home mortgage help is a lifesaver for thousands of struggling families in the U.S.
Do You Qualify For Help Under The Obama Stimulus?
Under traditional refinancing or mortgage modification plans, the homeowner was expected to have at least twenty percent equity in their homes in order to qualify. The Obama administration realized that with the decrease in home values due to the mortgage crisis and the economy, many homeowners do not have sufficient equity built up in their homes to traditionally refinance or restructure their mortgages to their advantage, despite the drop in interest rates that is prevalent right now in the housing market.
Under the new Obama plan, homeowners who owe as much as 105% of their home value on their mortgage can qualify to have their mortgages modified to new terms, with interest rates as low as 2% in many cases. All in all, the Obama plan to save home mortgages and keep families in their homes is expected to benefit five million homeowners.
And unlike a traditional mortgage, the government pays the cost of the refinancing, including closing costs, which should benefit the many homeowners who are held back by the inability to pay these costs up front. This stimulus action also provides other incentives for lenders who use the new government guidelines when refinancing mortgages, making a greater number of lenders willing to finance a bigger audience of homeowners to help them find a more affordable mortgage solution that they can live with based on their income.
Lower Your Monthly Mortgage Payment
Under the modification or refinancing program that the Obama Economic Recovery Act of 2009 provides, homeowners can only agree to a payment that is 31% or less of their monthly income before taxes (gross income). With many homeowners stuck in mortgages that are eating up as much as 60% of their pre-tax income, this is welcome news. Making smaller monthly payments on their mortgage allows these homeowners to keep more of their money on hand for other purposes, causing them to use less credit and pay more on their debts. And because these mortgages are refinances or modified to a more affordable and all-time low interest rate, the total price of the home will be less, and even though homeowners will be making smaller monthly payments, they will be paying less in interest and more towards the principle owed on their homes.
|
