With President Obama's Mortgage Refinance Stimulus Plan Homeowners Can Refinance at 4.5 Percent

With President Obama's Mortgage Refinance Stimulus Plan Homeowners Can Refinance at 4.5 Percent

Homeowners who have missed, or are struggling to make their mortgage payments, now have some relief. President Obama's mortgage refinance stimulus plan makes an estimated 9 million homeowners eligible for a home mortgage refinance at a 4.5% fixed rate. Hundreds of dollars per month can easily be saved on mortgage payments.

Here are some of the requirements needed to fully take advantage of this "Home Affordability Plan" from Obama:

- The amount remaining on the mortgage must be for less than $729,500

- The home mortgage must have been closed on and finalized before January 1st 2009.

- The homeowner must use the house to be refinanced as a primary residence.

- Your income levels must be verified through the use of tax returns or pay stubs.

- A letter of "Financial Hardship" handwritten and signed by you is needed. This can be a loss of income, job, high medical bills or other expenses leading to your financial hardship.

- The homeowner must agree to get credit counseling if monthly debts, including the mortgage, exceed 55% of the homeowners gross monthly income.

Here are some things that banks and mortgage lenders can now offer you:

- The bank or mortgage lender can lower your monthly mortgage payment to 31% of your gross monthly income.

- Home interest rates can go as low as 2% in order to meet these guidelines set by President Obama.

- Homeowners will not have to pay any fees for home loan modification. These will be paid by the Government as part of the mortgage bailout plan.

- The bank or mortgage lender has the option of setting up a balloon payment at the mortgages end if the monthly payments were too low.

- Any balloon payments will have to be paid off in full should the homeowner want to sell or again refinance their property.

- Incentive plans are in place, backed by the government, which will gradually reduce the homeowners principal over the course of 5 years, up to a maximum of $5,000, for making mortgage payments on time.

- The mortgage interest rates are adjustable after a 5 year period. The low 2% and 4.5% mortgage interest rates are temporary fixes to help homeowners get out of their financial problems.

- Only one mortgage modification can happen using this mortgage stimulus plan, their will be no renegotiating later down the road after this.

Homeowners who are current and up to date on their mortgage payments and have a bank or mortgage lender who will not allow you to refinance or modify your mortgage due to the property values plummeting and the mortgage now being worth more than the home. There is now plans from Obamas mortgage refinance stimulus plan which will allow homeowners a chance to refinance, regardless of whether they previously rejected.

Some of refinancing options with this stimulus plan Obama:

The house must be the principal residence of the homeowner. This plan does not apply, as investment property or second homes.

Income must be sufficient to pay the new mortgage amount.

I am not able to pay cash to refinance the debt of others with this stimulus package.

The loan must be homeInsured or held by Freddie Mac and Fannie Mae.

Homeowners can lock in a fixed rate of 4.5% loan for 15 or 30 years.

Lower interest payments by the bank may be offered over five years.

Homeowners can now refinance up to 105% of the value of their home.

Home mortgage refinancing will save millions of homeowners hundreds of dollars every month. This stimulus package Obama will stabilize the housing mortgageMarket and stop foreclosures happening everywhere. These values to restore confidence in the market and at home began to rise. Refinancing is the right way, especially with that Obama's stimulus plan to save hundreds of homeowners each month, or more importantly, their home.

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