Do you belong to that large percentage of the American populace that ponders on some home mortgage refinance plans? Are you facing a foreclosure? With the widespread recession issue and problems, it is understandable that you may have lost your job or that your wage has been lowered to an extent that you find it hard to pay off your debts. Add to it the ordeal that you can’t easily sell your house with the current standing of the real estate market. These are all but the bits and pieces of a real-life scenario that every American faces nowadays.
President Obama has enacted the so-called “Making Home Affordable” plan as an answer to the people’s anxieties in regard to their financial obligations. The real question now is – can it really lighten your burden?
“Making Home Affordable” Plan Explained
An American homeowner like you is faced with a dilemma regarding refinancing your previous loan. Several homeowners turn to it as a final resort to be able to pay for their debt, build on the home’s equity, claim some funds out of such equity, and convert a high interest rate into a lower monthly interest rate.
President Obama’s enactment has allowed some lesser restrictions when it comes to the mortgage refinance loan options for every American. The same requirements have been imposed on the banks and other mortgage brokerage providers. They all have to adjust and modify their mortgage terms and conditions so that everyone can survive in these dire economic circumstances. Those people who own a home and are currently under very thorny financial circumstances are qualified to avail of this loan refinancing program.
The president hopes to mark a positive impact on the country’s real estate industry. He understands that the present economic situation has left millions of people stressed out and anxious. Thus, he has worked on this plan to provide the homeowners some relief and save them from possible foreclosure.
The Good News for every American Homeowner
Homeowners and future homeowners can find a wonderful benefit out of this scheme. There are several potential lenders who are willing to offer refinancing loans along with numerous options to choose from. The terms and conditions are also practically beneficial.
What Lies ahead of You
The package of this plan states that the homeowners can modify the terms coverage of their mortgage. It means that the monthly payment will be 31% or even less of their entire gross income. In compliance of the guidelines, the banks and other mortgage lenders can offer as low as 2% mortgage rate. The other cash incentives granted by the government will absolutely be of great help to pay off for the reduction of the ratio of payment to income.
How to become Eligible for the “Make Home Affordable” Plan
Those homeowners who are to qualify for the plan should fit into the requirements. First, they should have an existing loan in the last year. Second, they must not have incurred any payments for more than 30 days of past due.
Third, they must affix their signature to the letter of Financial Hardship indicating that they have suffered from reduced income so that they may be eligible to avail of the 2% interest rate. Other eligible candidates are those who have financed their home with Fannie Mae or Freddie Mac.