The Stimulus package will give homeowners who qualify assistance in grants, loans and tax credits upon approval of their application. To find more information, do a Google search of the words "affordability" and "loan modification." Existing loan interest rates and monthly mortgage payments can be changed to reflect lower income. Loan modification can help people save money while rebuilding the economy.
For those wondering what impact the new Stimulus Package will have on their mortgage, there's some facts to be known. Before Obama's new plan, an existing mortgage couldn't be modified if a home equity was 20% or lower. Now, it's not uncommon for people to have lost up to 105% of the value of their home. They can apply for loan modification.
Loans that were taken out under failed institutions like Freddie Mac and Fannie Mae are eligible for the loan modification program. New mortgage payments can be a percentage of a homeowner's monthly gross income; up to 31%. There has been a lowering of interest rates to 5.16% down from 6.5%, making loan modifications even more beneficial for struggling homeowners.
Homeowners with a current Adjustable Rate Mortgage (ARM) can achieve a lower, fixed rate if they have an existing variable interest rate. Monthly mortgage payments can be further lowered by lengthening the term of the mortgage by up to 30 years.
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For tips and facts about how you can benefit from Obama's Home Stimulus Plan - or to find out if you qualify, visit our no nonsense home stimulus guide: http://ObamasStimulusPackage.net
Author: Lindsy Emery