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

The Obama administration has set forth a new Stimulus Package designed to assist struggling homeowners with the ability to keep their homes from foreclosure by allowing them to modify their mortgages. Those who qualify are unable to continue making payments on their mortgages due to financial setbacks caused by job loss, deaths, divorce, or large debt. As many as 9 million homeowners have the potential to be assisted with their loans with this $75 billion Stimulus.The Package entails programs for refinance as well as loan modification.Here is what you need to know about the new refinance Package:* If you have a Freddie Mac or Fannie Mae-insured or owned loan, you can qualify for refinancing your home, no matter if you have the ability to pay off your loan. The goal of this program is to provide you with a boost to your equity if you owe more on your loan than the home is now worth.* Your loan must apply to your primary residence you are currently occupying as of 2009. Buildings you own that have no occupants do not qualify.Here is what you need to know about the loan modification Package:* Your lender receives an incentive of $1,000 from the government for successfully modifying your existing mortgage loan. By opting to modify the terms of your loan through a reduced or fixed interest rate, your monthly payment is lowered, with late fees waived.* Because of the incentive they receive, your lender will ensure that your payment is no more than 31% of your gross monthly income.

Source by Lindsy Emery

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