Government Mortgage Refinance Plan – Obama Saves Your Home?
Posted on | August 31, 2009 | 1 Comment
The government mortgage refinance plan was created to help Americans avoid foreclosure and save their homes. President Obama went to great lengths to make sure that the Making Home Affordable Plan was put in place as early as possible. Less than two months into his presidency we saw the release of this plan. No one benefits from a house being foreclosed on so the government and lenders are doing what it takes to help you stay in your home.
With this being said, you still need to do your part by keeping up with your mortgage payments to the best of your ability. Part of the Making Home Affordable plan is that if your mortgage is backed by Fannie Mae or Freddie Mac you will only have to pay 31% of your monthly salary on your mortgage payment. This will not last for your entire loan but at least for a little while until you get back on your feet financially.
Most American home owners are finding it a struggle to make their mortgage payment because over half of their paycheck is going towards this financial commitment. This will no longer be the case for the time being. Another major part of the Making Home Affordable plan is that most borrowers are now going to be able to have access to the historically low advertising mortgage rates.
Prior to March of 2009, only the prime borrowers of this country could refinance at low rates; that is not the case anymore. This is not to say that you will get a refinance rate of 5.05% with a 650 credit score but you will have a better chance to get a reasonable mortgage interest rate now that the Making Home Affordable Plan has been put into effect. You might be surprised at how low of a refinance rate you may qualify for. Your credit score may look much better now that most people have seen their credit score drop.
The government mortgage refinance plan was designed to help you stay in your home and refinance at lower mortgage rates. So far, the plan has been a success. Mortgage lenders are actually lending money and we are starting to see people make ends meet and paying their mortgage payments. There is still a long way to go, but we have to crawl before we walk, right?
Author: Jeremy North
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One Response to “Government Mortgage Refinance Plan – Obama Saves Your Home?”
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August 31st, 2009 @ 8:17 am
Jeremy,
Thanks for this great article! So many people are facing foreclosure and don’t understand what their options are until it is too late. You’ve outlined the Making Home Affordable plan in a way that anyone can understand.