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Many homeowners are considering a mortgage refinance to take advantage of the near record low interest rates and President Obamas stimulus plan. However, many people have no idea what huge benefits the Obama housing stimulus plan can provide. Here are some of the biggest advantages to refinancing a mortgage right now with Obamas stimulus plan.

Since so many people are struggling to keep their home and are facing financial problems, the Obama stimulus plan provides some really bug benefits to homeowners. Some of the biggest things include:

-Easy eligibility requirements for every homeowner who needs help. Even homeowners who owe more than their home is worth, have bad credit, or who are facing other financial problems, can get approval from Obamas stimulus plan for a refinancing or mortgage modification.

-No closing costs or fees for a mortgage refinance or modification. These fees and costs are generally cost thousands of dollars the most homeowners do not have.

-Homeowners with a mortgage from Fannie Mae or Freddie Mac can get a mortgage modification no matter what their financial or home loan situation is.

Never before has lowering your home loan payments and preventing your home from being lost been this easy. The Obama stimulus plan is designed to help nearly any homeowner who is at risk of foreclosure or defaulting on their loan. Millions of people are able to use this program for themselves and see huge savings.

Homeowners should contact a mortgage lender or bank today and see what options are available to them from Obamas stimulus plan. This program will help people like no other program has before. It is truly easy to get approved for a mortgage refinance or modification with Obamas plan.

I have been underwriting mortgages for years. Recently, I got into a new business but I still wish to share my advice, tips, and industry inside happenings of the mortgage refinancing industry.
For more articles on Mortgage Refinance check out my website

Article Source:http://www.articlesbase.com/mortgage-articles/get-home-mortgage-refinance-approval-from-obamas-stimulus-1767067.html

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Fannie Mae and Freddie Mac are now offering new mortgage modification programs for homeowners. This is because of President Obamas $75 billion housing stimulus program. Here are some things homeowners should know about Fannie Mae and Freddie Macs new mortgage modification options.

Homeowners all across the country are struggling to make their home loan payments. Since things are so bad, the Obama administration has enacted a housing stimulus program to help homeowners. This stimulus plan is designed to help homeowners avoid losing their home to foreclosure or loan default and get them into a better, and affordable monthly home loan payment amount.

Fannie Mae and Freddie Mac have been specifically called upon and are offering these new mortgage modification options to homeowners. Nearly any homeowner with a mortgage through either Fannie Mae or Freddie Mac can get a mortgage modification, save money, and prevent their home from being lost. This housing stimulus from Obama is designed to help struggling homeowners and that means many people are eligible for help from it.

Homeowners facing financial hardships, bad credit problems, an upside down mortgage, or other financial issues can now get a mortgage modification from Fannie Mae or Freddie Mac. Before this stimulus program existed, homeowners with these problems would have a extremely hard time finding help with their home loan modification. Now though with Obamas stimulus in full effect, homeowners are getting help easier than ever before.

Homeowners should take advantage of these new mortgage modification options from Fannie Mae and Freddie Mac and get help. Many people can easily save a lot of money by taking advantage of low interest rates and new Government backed mortgage modification programs.

I have been underwriting mortgages for years. Recently, I got into a new business but I still wish to share my advice, tips, and industry inside happenings of the mortgage refinancing industry.
For more articles on Mortgage Refinance check out my website

Article Source:http://www.articlesbase.com/mortgage-articles/fannie-mae-and-freddie-mac-mortgage-modification-help-from-obamas-stimulus-1687831.html

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In 2008, the United States underwent a huge economic meltdown and President Bush signed a major housing bill into law. As a part of this housing bill, a temporary tax credit was provided as an incentive for first time home buyers. The $7500 tax credit was available on the purchase of a principal residence. In 2009, The American Recovery and Reinvestment Act of 2009 expanded the first time homebuyer credit and increased it to $8000.

The stabilization of the housing market in 2008 due to the tax credit and the tremendous success of the cash for Clunkers program have shown that stimulus payments that directly go to the consumers are the ones that have the most impact. After more than a year since the worst period of the financial disaster, the government takeover of Fannie Mae and Freddie Mac, the fall of Lehman Brothers and the quick sale of Merrill Lynch the signs of optimism in the housing market  are visible everywhere. In the recent months the housing market has been bolstered by a number of factors, the first time homebuyer tax credit being one of them. With falling home prices and low rates of mortgages, the tax credit is the icing on the cake.

Though the credit has helped stabilize the housing market for now, there are contradicting views about its practicality and its costs. The National Association Of Realtors and The National Association of Home Builders have focused on the positive outcome of the tax credit, the additional 400,000 home sales that would not have happened otherwise, while some of the lawmakers are discussing the costs which, if it hits the estimated $15 billion, will be much more than what was projected in the economic stimulus bill.

While on one side the tax credit is increasing home sales, on the other side it is also increasing government spending and adding to the budget deficit. There have also been reports from governance groups and the IRS that there has been a widespread fraud around claims for this tax credit. According to the IRS 73,799 claims totaling approximately$ 504 million may not be from first time home buyers. Also people under 18, who are ineligible to buy a home, claimed almost $4 million in credits. Analysts also argue that the tax credit has not had much impact on the hardest- hit and most expensive housing markets and that the  benefits of this tax credit has been overstated and its impact going forward will be uneven. In markets with excessive bank-owned properties any demand that is stimulated by the tax credit will be offset.

In my opinion even though the tax credit may not have had much impact it certainly has had a psychological effect on people and has helped push some of the buyers from the sidelines. While the actual impact on the sales numbers may be relatively low, this tax credit has taken the worst case scenario off the table for the immediate future.

While on one hand this tax credit has drawn may people into the housing market, on the other hand it may be a subsidy for some who don’t need it.

I think without the tax credit the prices of homes may start falling again because job losses will continue to curb demand and reverse this year’s gains in housing market. The new version of the tax credit which includes  people with higher incomes and people who want to trade up into new homes, will  stimulate the housing market more than the old one due to the fact that under the expanded version more people qualify for the tax credit.

I think the tax credit is a short term fix for the housing market and if long term solutions are not found, the housing market will plummet soon after the tax credit expires. We need to find solutions to stabilize the economy and not make the country dependent on stimulus packages because it is the tax payers who will ultimately pay for the stimulus packages. If government debt keeps piling up at this rate it could easily lead to a second wave of financial disaster within a few years. Finally learning from our past mistakes; government policies encouraging people to become homeowners led to the credit and housing problems, and we should try to not go down that path again.

Student at West Chester University

Article Source:http://www.articlesbase.com/mortgage-articles/first-time-homebuyer-tax-credit-should-it-be-extended-1667703.html

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The new Obama administration has stated that they are committed to dealing with the foreclosure crisis, and there are also many programs already in place in order to deal with the foreclosure problem.

So how does a person access them? It’s not easy, of course, but it’s inevitably worthwhile.

Hector Milla Editor of the “Best Mortgage Loan Modification” website — http://www.BestMortgageLoanModification.net — pointed out;

“…The most famous program is the Fannie Mae refinancing program. Persons whose loans were packaged as securities and then sold to Fannie Mae can consult with Fannie Mae directly concerning their loan and seek to have it refinanced. Fannie Mae is legally committed to trying to find a way to keep people in their homes, and they are willing to take a considerable loss provided that the loan will still be paid off…”

While this program is a good start, it will not help persons who did not end up having their loan owned up by Fannie Mae. It also can’t help people who are hopelessly behind on their payments, or do not have any way of paying back any loans.

Another option is to contact governmental representatives. Many representatives are very concerned about the loss of homes and jobs among their constituents and are happy to take on cases and offer advice in order to build up voter support and goodwill.

“…Many local congresspersons won their 2008 election based on promises to help with the housing crisis, and they are eager to cash in on that promise. At the very least, they can direct them to the programs run by the U.S. Department of Housing and Urban Development in their area to fight foreclosure…” H. Milla added.

Further information about how to get professional assistance with a mortgage loan modification by visiting; http://www.BestMortgageLoanModification.net

Hector Milla runs his corporate website at http://www.OpsRegs.com where you can see all his articles and press releases.

Article Source:http://www.articlesbase.com/mortgage-articles/goverment-help-to-stop-foreclosure-and-other-alternatives-1666496.html

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With interest rates at historic lows, refinancing is an increasingly attractive option for many homeowners who could save a substantial amount of money on their mortgage interest repayments. Besides, refinancing enables homeowners to spread their mortgage over another 15 to 30 years depending on the terms agreed. In any case, they can benefit from lower interest rates to have lower monthly mortgage payments.

Due to the credit crisis, requirements for refinancing are quite tight, particularly after Freddie Mac and Fannie Mae have changed the percentage of home value that can be financed. This has put the savings from refinancing to a lower rate out of the grasp of millions of Americans. Yet, the banking industry, enabled also by the President Obama’s $75 billion ‘Homeowner Affordability and Stability Plan’, has made refinancing possible based on certain requirements that need to be met.

Here are the factors that you need to consider to determine if they you are qualified for refinancing:

A) General Requirements

1. Debt-to-Income Ratio (DTI)

Before approving an application for refinancing, lenders calculate your debt-to-income (DTI) ratio. In simple terms, they weigh household debt against household income to see if the money your household spends is more than the money your household earns. In general, lenders ask information about your income, debt and housing costs. A high DTI ratio may delay the process of refinancing so it makes more sense to payoff some of your debt before applying. Normally, an accepted DTI ratio is maximum 38 percent, but it depends on the lender and the flexibility of the programs offered.

2. Loan-to-Value Ratio (LTV)

The loan-to-value ratio calculates the amount you want to borrow for refinancing as a percentage of the total current value of the house. In simple terms, lenders weigh the amount you want to borrow against the value of your house. Under the current conditions, mortgage refinancing is allowed where the loan-to-value ratio does not exceed 80% with a form of credit insurance. For instance, if your home is worth $280,000 and you want to refinance for $220,000, the loan-to value ratio is 79%, which is accepted. Yet, a major consideration is the credit insurance required. In some parts of the U.S. it is difficult to obtain because they are viewed as declining markets by insurers with the risk of further deterioration in values.

President Obama’s ‘Homeowner Affordability and Stability Plan’ allows for a 105% loan-to-value ratio provided you have a good record of mortgage payments, your loan is backed by Fannie Mae or Freddie Mac and you are do not owe more than 105% of your home’s value. If you meet these requirements, then you qualify for refinancing under the ‘Homeowner Affordability and Stability Plan’ even if you owe between 80-105% of your mortgage.

3. Credit Score

Credit score is very important when applying for refinancing. If your credit history is damaged, lenders will offer you refinancing with higher interest rate and terms that might not make it an attractive option. Having a good credit score and a good track record of mortgage payments, you are more likely to be offered a lower interest and better terms.

B) Under the ‘Homeowner Affordability and Stability Plan’

If you plan to ask for refinancing under the ‘Homeowner Affordability and Stability Plan’, you need to meet further criteria, as follows:

1. Having a conforming loan, backed by Fannie Mae or Freddie Mac

Nearly 60% of conforming loans are backed by Fannie Mae or Freddie Mac. Bought by these mortgage companies and sold to Wall Street, conforming loans may range between $417,000 to $729,500 in more expensive areas like Washington, DC, San Francisco or Boston. However, as you cannot know if your loan is backed by Fannie Mae or Freddie Mac, you should ask you lender if you qualify under Obama’s housing plan.

2. Having a loan on or before January 2009

Under Obama’s housing plan, only loans that started on or before January 1, 2009 are eligible for refinancing under this program.

The ‘Homeowner Affordability and Stability Plan’ has several provisions that are quite favorable for homeowners, but you need to properly investigate them before applying fore refinancing.

All in all, lenders will look at a combination of your debt-to-income ratio, loan-to-value ratio, and credit history, but also at your financial condition to determine if you qualify for refinancing your mortgage. However, before applying, you need to be sure that refinancing is a good option for you. So, it’s better to talk with your lender to evaluate your options.

Christina Pomoni has acquired her MBA Finance from the American College of Greece. Her advanced familiarity with financial statement analysis, capital budgeting and market research has been acquired through her professional career at high-esteemed organizations. As part of her long journey, Christina has served as an Equity Research Associate at Telesis Securities (EFG Eurobank) and a Financial & Investment Advisor at ING Group. Besides, having lived at Chicago, IL, Boca Raton, FL and Paris, France has helped her, not only to be a successful professional, but mostly to see life under a more creative and innovative perspective.

Since 2005, Christina provides high quality writing services to numerous websites and research companies contributing her knowledge and expertise. Her areas of specialization are Business, Finance & Investment, Society, Politics & Culture. She also has a very good knowledge of Entertainment, Health & Fitness and Computers & Technology.

Christina currently designs the website of her own writing company. Believing that knowledge is the road to opportunity and development, her mission is to promote her already established knowledge to a growing number of visitors and to provide high quality writing services to meet the most demanding customer requirements.

Article Source:http://www.articlesbase.com/mortgage-articles/how-to-determine-if-you-qualify-for-refinancing-your-home-1656626.html

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