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How To Qualify For Obama's Mortgage Modification Stimulus
Have you missed some mortgage payments and are facing defaulting on your home loan, or home foreclosure? If so, the Government and President Obama have enacted two options to help millions of homeowners refinance or modify their existing mortgages into new ones with a 4% fixed rate interest rate. Here is some things to expect from this plan:
How to Avoid PMI With Less Than a 20% Down PaymentThe dreaded PMI (Private Mortgage Insurance) is required by lenders to borrowers who do not have at least 20% of the purchase price as a down payment. Depending on your loan balance, this PMI payment can range from an extra $50 to $300 in addition to your mortgage payment. Yikes! Have you ever heard of "Lender Paid Mortgage Insurance?" Lender Paid Mortgage Insurance (LPMI) is where the lender doesn't require PMI in exchange for a higher interest rate. Now, who would want to pay for a higher interest rate? Well, if you are concerned about not exceeding a particular monthly payment, you may want to consider this option. President Barack Obama's Mortgage Modification Or Refinance Stimulus PlanPresident Barack Obama is well aware that the current economic situation in the country leaves a lot of homeowners struggling. Housing prices have crashed and the all time high number of foreclosures does not help that at all, lowering surrounding homes values by as much as 9%. Home and property values have dropped so far that many homeowners now owe more on their mortgage than their home is actually worth. Due to these problems, the Obama administration has introduced the housing and homeowner stimulus plan. This plan was announced in February and has started this month. Most people no longer have 20% equity in their homes, which is typically required for traditional mortgage refinancing, due to the dropping home prices. The stimulus plan from President Obama is going to make it easier for homeowners to modify or refinance their current home mortgage and have more manageable monthly payments and avoid a possible foreclosure. The goal of this home mortgage stimulus plan is to help over 5 million homeowners stay in their homes and avoid foreclosure or defaulting on their loan. This is done by giving incentives to mortgage lenders to use their new guidelines for approving a mortgage refinance. So with more incentives and less risk to mortgage lenders are going to be more flexible on who can refinance, how much they can save, and finding financially affordable monthly mortgage payments. |
Do You Qualify For the New Federal Mortgage Loan Modification Plan?If you have missed some payments on your mortgage and are now risking a default on your loan, the government has come up with two possible plans to help. One of these is called Mortgage Loan Modification! Here are the current qualifications expected to pass congress: • Your primary mortgage (1st mortgage) must be less that $729,500 Act Now to Get a 4% Mortgage Refinancing From Obama StimulusThe Obama designed, and Government backed, "Making Home Affordable" plan will save millions of homeowners, on average, hundreds of dollars every month through 4% home mortgage refinancing and modification programs. Taking advantage of this plan is simple, and homeowners all across the country are qualified. Here is how: |