Homeowner Affordability and Stability Plan

<h1>Homeowner Affordability and Stability Plan</h1>Author: <a title="MPetrone" href="http://www.articlesbase.com/authors/mpetrone/281510.htm">MPetrone</a> The “Homeowner Affordability and Stability Plan” is a $75 billion program which was enacted by President Obama earlier this year. This plan will help struggling homeowners get affordable monthly mortgage payments by offering them new refinancing and home loan modification options. Using this plan, an estimated 8 million homeowners can get help with lowering their payments, getting better interest rates, and avoiding losing their home. This is all possible due to the cash incentives that will be given to <a href="http://www.refinancingcondo.com/2009/11/homeowner-affordability-and-stability.html" title="Mortgage Lenders">mortgage lenders</a> and banks who follow the plans rules, and help homeowners. This money will also provide some financial security so the lenders and banks are able to help more homeowners, with less financial risk to them. With so many homes at risk of being lost, and the housing market in bad shape, no one wants to deal with a foreclosure. In a bad economy and housing market, a foreclosure can turn into a liability and offer no profit for the lender or bank. That fact, plus the Government stimulus program, make right now a great time for getting help with a <a href="http://www.refinancingcondo.com/2009/07/homeowners-get-help-obamas-federal-loan.html" title="home refinance">home refinance</a>. The thought behind this program is that regardless of the homes worth, if a homeowner can afford the payments, they will, and keep their home. That is why a major part of this program says that a homeowners monthly mortgage can not exceed 31% of their gross monthly income. This payment includes all taxes, insurance, and any fees associated with home ownership. This will be a huge reduction for many people, and may be just what they need to prevent their home from being lost. To meet this 31% threshold, a mortgage lender or bank can reduce interest rates down to as low as 2%, extend the length of the home loan, or both. Another big thing that homeowners will get help from is that when using this plan, a home can actually be worth less than when it was purchased, and the homeowner can still get help. This will be a huge relief for many homeowners who have seen the value of their house drop in this bad economy. Many homeowners bought a home with an ARM loan thinking that it would rise in value, and they could get a <a href="http://www.refinancingcondo.com/">mortgage refinance</a>. However, it has not worked out according to plan for millions of homeowners who are now stuck with an ARM loan that is increasing. Getting help for yourself using this program is not hard to do. Contact a mortgage lender or bank and see what the benefits of this plan could do for you, and your home loan. Help is available, go out there and get it.About the Author: 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 <a href="http://www.RefinancingCondo.com">Mortgage Refinance</a> check out my websiteArticle Source: <a href="http://www.articlesbase.com/">ArticlesBase.com</a> - <a href="http://www.articlesbase.com/mortgage-articles/homeowner-affordability-and-stability-plan-1461831.html" title="Homeowner Affordability and Stability Plan">Homeowner Affordability and Stability Plan</a>

The “Homeowner Affordability and Stability Plan” is a $75 billion program which was enacted by President Obama earlier this year. This plan will help struggling homeowners get affordable monthly mortgage payments by offering them new refinancing and home loan modification options. Using this plan, an estimated 8 million homeowners can get help with lowering their payments, getting better interest rates, and avoiding losing their home.

This is all possible due to the cash incentives that will be given to mortgage lenders and banks who follow the plans rules, and help homeowners. This money will also provide some financial security so the lenders and banks are able to help more homeowners, with less financial risk to them. With so many homes at risk of being lost, and the housing market in bad shape, no one wants to deal with a foreclosure. In a bad economy and housing market, a foreclosure can turn into a liability and offer no profit for the lender or bank. That fact, plus the Government stimulus program, make right now a great time for getting help with a home refinance.

The thought behind this program is that regardless of the homes worth, if a homeowner can afford the payments, they will, and keep their home. That is why a major part of this program says that a homeowners monthly mortgage can not exceed 31% of their gross monthly income. This payment includes all taxes, insurance, and any fees associated with home ownership. This will be a huge reduction for many people, and may be just what they need to prevent their home from being lost. To meet this 31% threshold, a mortgage lender or bank can reduce interest rates down to as low as 2%, extend the length of the home loan, or both.

Another big thing that homeowners will get help from is that when using this plan, a home can actually be worth less than when it was purchased, and the homeowner can still get help. This will be a huge relief for many homeowners who have seen the value of their house drop in this bad economy. Many homeowners bought a home with an ARM loan thinking that it would rise in value, and they could get a mortgage refinance. However, it has not worked out according to plan for millions of homeowners who are now stuck with an ARM loan that is increasing.

Getting help for yourself using this program is not hard to do. Contact a mortgage lender or bank and see what the benefits of this plan could do for you, and your home loan. Help is available, go out there and get it.

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

Rate this Article:

0 / 5 stars - 0 vote(s)

Re-Publish

Article Source: http://www.articlesbase.com/mortgage-articles/homeowner-affordability-and-stability-plan-1461831.html

Article Tags: Refinance, Refinancing, Mortgage Refinance, Home Refinancing, Loan Refinance, Obama Stimulus, Home Affordability Plan, Stimulus Refinancing

Related Videos
Related Articles
Ask / Related Q&A

Play

Gift Idea for Homeowners: Hand Crank Radio

Play

How to Protect Your Home

Play

Homeowner's Liability

Play

5 Things to know about Homeowners Insurance

Play

The Lazy Homeowner remodels his kitchen

Latest Mortgage Articles
More from MPetrone

Save Cash with this Mortgage Refinancing Advice

By: MPetrone | 30/11/2009
Homeowners looking into refinancing should know that there are some fees and costs involved. These costs can equal thousands of dollars and easily eat into any potential benefits a refinance may have for you. If you are looking to refinance a mortgage, here are some tips that will assist you in getting the best deal possible, and avoid some expensive fees and costs.

What you need to know about mortgages and the type of financial services available

By: Francesca Knap | 29/11/2009
When choosing the type of mortgage for buying a home or property make sure you shop around the different mortgage brokers and what kind of financial services that they can provide for you.

Reverse Mortgage Loans Are Planned For Senior Citizens

By: Juhani Tontti | 29/11/2009
Although the reverse mortgage loans have been available for senior citizens for quite many years, many hear about them for the first time. In this article I will describe you the reverse mortgages pros and cons.

Where to Turn For a Principal Reduction These Days? Not Loan Modifications!

By: Megan McGinnis | 29/11/2009
Loan modifications don't offer principal reductions and short sales mean the home owner has to move out. Where do you turn to get a principal reduction and stay in your home? These questions answered and more...

Writing a Persuasive Loan Modification Hardship Letter

By: Walter Sigmore | 28/11/2009
It is a very probable reality that in these times of economic uncertainty, your financial capability is strong enough to face the many pressures of daily life. One of those pressures is the likely chance of losing your house. This is where a compelling loan modification hardship letter comes into play. It is a legal letter in which you describe your current financial hardships to your lender and state the steps that you have are taking in order to solve your financial problems.

Bank of Americas New Mortgage Refinance and Modification Options for All Homeowners

By: MPetrone | 28/11/2009
Bank of America is participating in President Obamas “Making Home Affordable” plan. This mortgage bailout program will help millions of homeowners get a mortgage refinance or modification which will save them money, their home from foreclosure, or both. Homeowners all across the country can use Bank of America and these new programs for themselves. Here is some help getting started.

Reverse Mortgage and Live Rich

By: Randal Fleming | 28/11/2009
Do you need to finance a home improvement? Pay off a current mortgage? Supplement your retirement income? Look after health-care expenses? If this is so a reverse mortgage enterprise will perform miracles for you. With a reverse mortgage, you can turn the value of your place into money with no necessity to pay back your loan each month. When Is It Repaid? A reverse mortgage is a loan taken out against your house. The smartest thing about it is that you don't need to make rep...

Get 2% Interest Rates from Obamas Mortgage Bailout

By: MPetrone | 28/11/2009
Homeowners all across the country are struggling to make ends meet. Many homeowners are going through financial problems, and are finding it very hard to make their mortgage payments. This has led to an all time high foreclosure and mortgage default rate. Because of this, President Obama announced his “Making Home Affordable” plan, to help homeowners.

Bank of Americas New Mortgage Refinance and Modification Options for All Homeowners

By: MPetrone | 28/11/2009 | Mortgage
Bank of America is participating in President Obamas “Making Home Affordable” plan. This mortgage bailout program will help millions of homeowners get a mortgage refinance or modification which will save them money, their home from foreclosure, or both. Homeowners all across the country can use Bank of America and these new programs for themselves. Here is some help getting started.

Get 2% Interest Rates from Obamas Mortgage Bailout

By: MPetrone | 28/11/2009 | Mortgage
Homeowners all across the country are struggling to make ends meet. Many homeowners are going through financial problems, and are finding it very hard to make their mortgage payments. This has led to an all time high foreclosure and mortgage default rate. Because of this, President Obama announced his “Making Home Affordable” plan, to help homeowners.

Cash Back Mortgage Refinance for the Holidays

By: MPetrone | 27/11/2009 | Mortgage
Get extra cash for the holidays by refinancing your mortgage. Cash out refinance is one way a homeowner can easily get a large sum of money, with low interest rates. This is especially a popular option around the holidays as homeowners feel the effects of having no cash. Many people are able to get cash from their homes equity before Christmas. Find out how:

Mortgage Bailout Plan - New Mortgage Refinancing Options

By: MPetrone | 27/11/2009 | Mortgage
With the financial problems that millions of homeowners are facing, foreclosure and mortgage default are at all time highs. To counteract this, the Obama administration has enabled a $75 billion stimulus program to bailout homeowners, and stop homes from being lost. Millions of homeowners can now use these programs and get a mortgage refinance or modification for themselves. Here is how it works.

Obama and Wells Fargo Offer New Mortgage Refinance Options to Homeowners

By: MPetrone | 26/11/2009 | Mortgage
Wells Fargo and President Obamas mortgage stimulus plan will be able to help millions of homeowners. Now, getting a more affordable monthly home loan is easier than ever, regardless of your financial situation. Here are some things you should know about mortgage refinancing with Wells Fargo and Obamas stimulus plan.

3 Money Saving Mortgage Refinance Tips

By: MPetrone | 26/11/2009 | Mortgage
Many homeowners are interested in getting a mortgage refinance as fast as possible. However, in the rush to lower your interest rate, or monthly payments, many homeowners overlook some important things about their mortgage refinance deal. Here are some pitfalls which are easily avoidable and will make your refinancing even better, and more beneficial.

Ditech and GMAC Stimulus Plan Mortgage Refinance Options

By: MPetrone | 26/11/2009 | Mortgage
Ditech and GMAC have been approved to offer new stimulus plan options to help homeowners get a mortgage refinance or modification. This stimulus plan has over $75 billion in funding, all of which is to help struggling homeowners. Ditech and GMAC are now offering new options to homeowners to prevent them from losing their home, save money, or both. Here is some things you should know.