Home Mortgage Refinance Program:Obama Mortgage Refinance – How to Qualify
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: Refinance and Loan Modification. Let us discuss each one of these components in detail: Home Refinance Stimulus Package and 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.
Your loan amount must be more than 105% of the current value of the home in order to apply for the mortgage refinance. Now your rate of interest can be lessened. It would be 5.16% in place of 6.5%.The mortgage monthly payments would now be limited to 31% of the gross monthly income of the borrower. Also the sum total of all credit payments taken together must not be higher than 55% of the pre tax income of the borrower.
When you apply for the loan modification & refinance even if you do not own 20% equity of the home. This rule is now written off. The government has announced $ 1000 cash benefit for the banks & the mortgage companies per loan modification & refinance. So the banks are all willing to help you in your crisis.
You can also take professional help from the HUD appointed counselors. They act as your representative in the bank dealings and present your case in the best possible amidst the bankers. Above they do not charge for their work as they are paid by the Federal Government. You must seek for their guidance once.
Learn more about Obama Mortgage Relief Plan Qualifications.
Author: John Roney
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