Homeowners can avoid foreclosure and mortgage default be refinancing or getting a home loan modification through President Obamas housing stimulus plan. Millions of homeowners can use this plan to see savings of hundreds of dollars per month on their mortgage, and more importantly, save their home. Here is what you need to know to use this plan for yourself:

-Home loans which were signed prior to January 1st 2009 are able to use this mortgage bailout plan for their situation. Mortgages which were closed on after that are eligible for an $8000 tax credit, but that is different.

-Mortgages from Fannie Mae or Freddie Mac and are over 31% of a homeowners income, are eligible for a home loan modification. This modification will lower the homeowners monthly mortgage payment to less than they are paying now, or lower than 31%. This is a savings of 20% or more for a lot of homeowners.

-Homes which have dropped in value, can now get approved for mortgage refinancing or modification with this stimulus plan from the Government. Homeowners all over have seen their property values drop due to foreclosures, a bad housing market, tightened lending, and bad mortgages.

-Mortgages which exceed the homes market value by as much as 5% will still qualify for home loan modification or refinancing. Previously, a homeowner who owed more than the homes worth would never have a chance at approval.

Foreclosures and mortgage defaults can easily be avoided if a homeowner just takes action. The Government put this plan in place to help struggling homeowners, and if you are, you need to take control of your situation and get a mortgage refinancing or home loan modification through this plan before time runs out. You do not want to lose your home if you do not have to, and now you have an option.

By: Michael Petrone

Knowing when to refinance your second mortgage is a difficult decision. Prior to making the decision to refinance make sure that you will benefit from refinancing. Either you should be saving a few hundred dollars a month from lower interest rates or you should be switching from an adjustable rate to a lower fixed one.

Lower Rates = Savings

Refinancing to a new mortgage with a lower rate than your current loan can save hundreds of dollars a month. To make sure that you are saving money and not wasting it you should compare your current home loan with a potential new loan. Knowing when to refinance is important so always be aware of what is going on and check for lower rates whenever you can. By combining you first and second mortgages you can reduce any possible fees and high rates, but it may only work if the first mortgage loan comes with a high interest rate.

Rising Rates – Protect Yourself

Although refinancing will lower your interest rate there is still a possibility of the rate increasing. However if your second mortgage has an adjustable rate it can protect you from the possibility of increasing interest rates. Although there may be caps put in place you loans length could be extended and as a result the total increases. It is possible to find a fixed rate that is lower than an adjustable rate. With a fixed rate you can rest easy knowing your payments will not increase from one month to another.

Refinancing – Timing Is Important

Most times with home equity loans the majority of the interest is paid at the beginning of the pay period. What this means is that by the half way point of your loan you will be paying less interest and more on the principle of the loan. In order to save the most possible it is best to refinance early. Knowing when to refinance can be difficult to decide but is well worth the possible savings every month.

Although refinancing is a good move it is best to hold off if you plan on moving soon. It can take a couple of years to recoup the cost of refinancing. Refinancing before you move can end up costing you money instead of saving you some. Look into the possibility of refinancing and see if it will work for your situation. It can be the answer that you have been looking for this whole time.

By: Michael Petrone

New programs are in place which allow almost every homeowner facing foreclosure the chance to save their home. Mortgage refinancing and modification packages are now available which help homeowners in nearly any financial situations get a more affordable mortgage. Many homeowners are struggling financially and can still use this plan for themselves.

Home loans everywhere are at risk. Millions of homeowners are unable to pay their mortgage anymore due to a loss of job, increased payments, financial hardships, or lots of other problems. This is causing many homes to be lost to foreclosure or mortgage default, and bringing down entire neighborhoods. Something needed to be done, and President Obama answered with this amazing stimulus plan for homeowners. Now, there is some hope for homeowners and a chance to save their home.

There is over $75 billion dollars in funding for this plan which is there to help homeowners. This money will make mortgage lenders and banks more likely to approve you because they will be getting most of this money. The money mortgage lenders and banks get to help homeowners covers some of their risks when approving an at risk homeowner. Also, this money will cover all costs and fees typically associated with refinancing.

With struggling homeowners being the main concern, getting help for a home loan is easier than ever. Now, there are a lot of new options and programs which can truly benefit millions of homeowners. A homeowner needs to contact their mortgage lender, or a competing lender, and see what they can do for you. Ask about the housing stimulus plan, and how it can help you. This program is here to help. You need to do your part and ask for the help you require.

By: Michael Petrone