-
Obama Mortgage Plan – How Will It Help Me?
2 CommentsThe Obama mortgage plan was created back in March of 2009 and has done a great deal to help home owners stay in their homes. Prior to the Making Home Affordable plan, it was near impossible to refinance with a loan-to-value over 100%. The original plan changed that to a 105% loan-to-value to refinance. This basically means that your home can be 5% underwater and you will still have an opportunity to refinance. It is highly unlikely that you will get an extremely low mortgage rate, but you will still have the opportunity to refinance.
Recently, President Obama extended the plan to 125% loan-to-value to refinance. This is a huge step because it means you can be 25% underwater and still have a chance to refinance. This is important because many homeowners have seen the value of their homes decline because another house in their neighborhood was foreclosed or short sold. Obviously there is nothing that they can do about it, but they are seeing a decline in the value of their home.
The other part of the Making Home Affordable plan that is very important is the 31% mortgage payment plan. If your home was financed by Fannie Mae or Freddie Mac, the government is making all arangements to allow you to only pay 31% of your household monthly income. This is very important to the homeowners who see the majority of their paycheck going to their mortgage payment. This will no longer be the case as only 31% of your paycheck will go to your mortgage payment.
The 31% plan will not last forever so please do not think that you will pay 31% of your monthly salary on your mortgage until it is paid off. There is a stipulation in the plan that as time goes by, your monthly mortgage payment will eventually work its way back to the original amount. The thought is that you should be back on your feet within a few years and the economy should improve so making that payment won’t be as much of an issue.
Overall, President Obama is working very hard to keep you in your home. Please make sure to do your research on the Making Home Affordable website as you might have opportunities you didn’t even know about. There is very little doubt that if you make the effort and do what it takes, you can stay in your home!
Published on July 11, 2009 · Filed under: Uncategorized;
2 Responses to “Obama Mortgage Plan – How Will It Help Me?”
-
brian said on July 11th, 2009 at 11:52 am
The banks need to work hard to keep you in your home as well because they could end up inundated with properties they cannot sell and consequently they would not be able to recover the debt. So it actually makes sense for them to cut interest rates with an incentive and to at least recover the debt even at a low level of interest after all 100% of nothing is nothing.
-
jay miller said on July 13th, 2009 at 9:20 am
All of these programs are useless none of the lenders have signed on. They don’t want to devalue their assets. All of the government programs have failed so far. They need to find away to help these homeowners and to get the banks to sign on.
