Mortgage Refinance Stimulus Plan‏

With foreclosure bugging many of us out there, the government had previously come up with the Loan Modification Plan through the President's office to assist those facing this dilemma of how to salvage their homes. This plan however faced heavy criticism from almost all quarters for the lengthy application process attached to it, as well as the low approval rates for those applying for them, in addition to other complications.

The President and his office were quick to realize this issue, and rectified it by revising the Loan Modification Program to help struggling homeowner cope with foreclosure issues. The homeowners' bid to refinance home mortgage would in the future be approved more easily, and the program has also included newer features within it to help struggling homeowners further. Now even the unemployed are offered subsidies, and those who have borrowed more than the worth of their homes can also apply for subsidies to help them cope with refinancing.


Any balloon payments will have to be paid off in full should the homeowner want to sell or again the Refinance Relief Program . Incentive plans are in place, backed by the government, which will gradually reduce the homeowners principal over the course of 5 years, up to a maximum of $5,000, for making mortgage payments on time. The mortgage interest rates are adjustable after a 5 year period. The low 2% and 4.5% mortgage interest rates are temporary fixes to help homeowners get out of their financial problems. Only one mortgage modification can happen using this mortgage stimulus plan, their will be no renegotiating later down the road after this.

Late fees are the norm when individuals are trying to manage several payments to different lenders and the streamlined, single payment system that consumers can enjoy in consolidation plans can simplify life a great deal and save individuals from the added expenses of penalty charges.

Participants in refinance programs will only be responsible for sending in a single monthly payment on a pre-arranged date that works well for them.

Even lower interest payments may be offered by the bank over the course of 5 years. Homeowners can now refinance up to 105% of the value of their home. Refinancing a home mortgage will save millions of homeowners hundreds of dollars every month. This mortgage stimulus plan from Obama will stabilize the housing market and curb the foreclosures happening everywhere.

This will restore confidence in the market and home values will start to rise again. Refinancing the right way, especially using this Obama stimulus plan, will save homeowners hundreds per month, or more importantly, their home.