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

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

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

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

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

AARP

The America Association for Retired Persons provides a wealth of information and resources for people over the age of 50.  AARP’s website contains an entire section devoted to reverse mortgages.  The site also provides a downloadable booklet covering the basics of reverse mortgages and the different mortgage types available.  The booklet is written simple language with supporting graphics and charts.  AARP also provides links to reverse mortgage counselors, originators, lawyers, financing planners and other reverse mortgage professionals

Fannie Mae

Fannie Mae, although originally established as a government agency, is a shareholder-owned company which provides affordable housing to Americans in accordance with a congressional charter focusing on providing financial services to low and middle income home buyers.  Fannie Mae itself does not lend money but insures reverse mortgages and works closely with lenders to provide reverse mortgage loans.  Fannie Mae provides two types of reverse mortgages: the Home Keeper Loan and the Home Keeper for Purchase Loan.

Financial Freedom

Financial Freedom is a private agency specializing in reverse mortgages.  Unlike government-backed programs, Financial Freedom offers loans for those who have high-value homes.  The company participated in the development of the reverse mortgage concept during the 1980’s and is still one of the most trusted companies for a reverse mortgage.

HUD

The U.S. Department of Housing and Urban Development offers the popular reverse mortgage called HEC (Home Equity Conversion Mortgage).  The HUD website provides lists of government agencies that assist seniors with housing, a mortgage calculator and links to HUD-approved counselors and lenders.

NRMLA

The National Reverse Mortgage Lending Association is a group of reverse mortgage lenders and related professionals, who together provide educational resources, take on the roll of policy advocates and act as a public affairs center.  NRMLA was established in 1997 to enhance the professionalism of the reverse mortgage business.  Their website provides downloadable consumer guides; a reverse mortgage calculator;  links to reverse mortgage news items and developments; and more.

Newbuyer.com screens internet-based buying information and resources to help auto and home buyers make confident, well informed buying decisions.

Article Source:http://www.articlesbase.com/mortgage-articles/the-top-5-resources-for-the-scoop-on-reverse-mortgages-1650420.html

These new options are made possible because of $75 billion in funding to help homeowners. This money comes from the Obama administration in an effort to help people get a more affordable home loan payment every month, and avoid losing their home. The stimulus program has a requirement for homeowners and allows everyone with a mortgage from Fannie Mae or Freddie Mac to get a mortgage refinancing or modification.

Homeowners who wish to use this plan with Fannie or Freddie will see numerous benefits. Many people will save money, avoid losing their home, or both. Never before has such a plan been enacted that is capable of helping so many people. Here are some of the biggest ways this stimulus program helps homeowners with Fannie Mae or Freddie Mac:

-This plan allows homeowners with Fannie or Freddie to modify their mortgages even if there are upside down. Now, a homeowner can get approved for a mortgage refinancing and owe up to 25% more than the home is worth on the open market. This is a major change that will help many struggling homeowners.

-To make home loan payments affordable, the stimulus plan has some requirements which Fannie Mae or Freddie Mac must meet. A major one is that a modified mortgage can not exceed 31% of a homeowners gross monthly income. In order to accomplish this, interest rates can be reduced, the home loan can be extended in length, or the terms and conditions of a mortgage can be altered.

-Homeowners who have lost a job, are facing huge debts, have hospital bills, or are experiencing other financial hardships can get help using this stimulus program. Even homeowners who have been denied a mortgage refinancing from Fannie or Freddie in the past will now find it much easier to get help. The stimulus plan from Obama mandates it so it is nearly guaranteed that many homeowners can get approved for a mortgage refinancing or modification.

-Homeowners who use this plan for refinancing or mortgage modification will not need to pay any fees. This means that closing costs, loan origination fees, points, and other costs do not exist. This will save a homeowner thousands of dollars which they probably do not have.

Never before have so many people been able to get help with their home loans. Getting help refinancing a mortgage is easy. Contact Freddie Mae or Freddie Mac and ask how you can benefit from refinancing a mortgage according to Obamas stimulus program.

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/new-fannie-mae-or-freddie-mac-mortgage-refinance-and-modification-bailout-options-1618356.html

If you are familiar with the application process you know that when application is made, the lending institution, whether a Bank, a Mortgage Company outside a Bank or a Broker, they have three (3) business days to give you three (3) primary disclosures.  These included:

1. Good Faith Estimate (GFE)
2. Truth-in-Lending Disclosure (TIL)
3. Servicing Disclosure

RESPA is changing as of April 2010 the following:

• The initial GFE become the binding GFE -the fees entered on this form are becoming more binding then they have previously been.  There are certain tolerances but those are only rare instances and minimal % adjustments. 
• All fees typically charged to borrowers regardless of who pays must be listed on the GFE.
• Fees disclosed, but paid by others are still bound by tolerances.
• Each numbered block explains the fees on the GFE and you will be able to ask questions about all fees to determine why a fee is what it is.
• The first block will contain all charges to you from the lender, broker, processing fee, underwriting fee etc.
• The second block will contain any Discount Fee.  You may have a credit or charge for the interest rate you have chosen and it will be included in block one.  You may receive a credit of a certain amount for higher interest rate, which will reduce your settlement charges (or) you may have to pay a charge to get a lower interest rate which will increase your settlement charges.  This second block is about your interest rate only and the fees will be included, if any in the first block.

This is a brief explanation of the fees charged specifically by the lender.  The other fees, most of them are charges you will pay for settlement charges which are incurred from the closing agent, the title company for title insurance, attorney fees, recording fees, transfer taxes, accrued interest and any fee that is designated as a part of closing. Please note that is report is not conclusive but it is relating to important mortgage information that you need to know.

The main purpose of this article is for you to know that once you receive the initial GFE, your fees will not be significantly different on the HUD1 at closing, than they are on the initial GFE.  Previously this was part of some serious problems by getting to the closing table without sufficient funds to close or the closing cost being much more than initially stated.  Especially on the Broker side.  As you know the Broker does not close your loan in their name, they must close through an approved lender and now the approved lender will be responsible for all fees from the Broker as well and there will be State and Federal guidelines to follow and some State limits are different than others previously and this may be changing. There are many other areas of news about what has happened in our mortgage meltdown process and should be of interest to all who want to stay abreast of important decision made upon our behalf.

Please note that this is something in your favor.  A lot has happened in the Mortgage World and it seems like it is taking forever to recover.  The States Regulators and Federal Regulations dictate certain charges you pay.  The individual Bank or Broker has no control over the fees that are set at maximums but they should maintain integrity and moderation per their code of ethics to be reasonable with the entire process.

choosing the right lender
Mortgage Credit Analysis
Mortgage Equity Loan

Article Source:http://www.articlesbase.com/mortgage-articles/mortgagerespa-changes-1600006.html

According to this mortgage rescue plan Obama government has targeted about 9 million homeowners who are in deep crisis. Under this plan, mortgage giants Fannie Mae and Freddie Mac will provide the refinance facility to 4 to 5 million homeowners. And, the rest 3 to 4 million homeowners who are unable to pay their monthly installments will get incentives that will reduce the monthly payments.

However, there are millions of borrowers who are in the crisis and have difficulty in paying monthly payments. But all of them do not qualify and hence are not eligible to avail the facility provided by this plan. If these people meet the following criteria, they are eligible for Obama rescue plan:

- Your home should be primary residence.

- The amount you have loaned on your first mortgage should be equivalent or less than $729,750.

- You must have genuine problem in paying your mortgage amount. (Normally, it could happen due to rise in your mortgage amount or abrupt reduction in your income or possibly both).

- You should have gotten your current mortgage before January 1, 2009.

If you full-fill the above requirements then you will get the following facility:

- Reduction in interest rate (merely 2%).

- Flexibility to extend the loan term up to 40 years.

In extreme conditions, when the homeowner is really bankrupted then this plan provides additional advantage i.e. forbears a part of the principal amount until loan is paid off.

However, under this plan your lender cannot lower your mortgage payments more than 31% of a borrower’s pre tax monthly income.

For more information regarding Obama Mortgage Plan and Obama Mortgage Plan 2009, please visitwww.fairhomeloan.org

Article Source:http://www.articlesbase.com/mortgage-articles/mortgage-rescue-plan-to-rescue-the-homeowners-1596885.html

This plan is funded with over $75 billion all to help homeowners. According to the guidelines in the stimulus program, homeowners with a mortgage from Fannie Mae or Freddie Mac are due for some great benefits. Things like 2% interest rates, an easy home loan modification process, and no cost closing are some of the biggest things that will help homeowners. Another part of this plan will limit how much a homeowner has to pay if they have a loan from Fannie or Freddie. This states that a monthly mortgage payment should not exceed 31% of a homeowners gross monthly income. This will include taxes, home fees, and insurance. Many homeowners pay more than that, and will see a good amount of savings by using this stimulus for themselves.

Since Fannie Mae and Freddie Mac are pretty much Government funded anyway, all homeowners with them are able to use this program for themselves. The basic idea behind this program is that if someone can afford it, they will continue to make their home loan payments, and avoid foreclosure or default. Many people have used this plan for their situation, and have seen great results. However, millions more people can still benefit from this program in one way or another.

Contact Freddie Mac or Fannie Mae today and ask how you can get a mortgage modification for yourself. Save money, and your home, take action now.

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-have-new-mortgage-modification-options-1560845.html