The US Government has intently charted out a Loan Modification and Mortgage Refinance Stimulus Plan Program, solely with the intention to save the troubled homeowners from foreclosure. This program has been specifically launched by President Obama’s Government, in order to help those homeowners who are facing financial crisis, owing to their inability to repay their home loans. It has been estimated that the US Government has spent approximately $75 billion to help homeowners facing financial trouble.
President Obama’s Government has brought some relief to those troubled homeowners who are trying hard to avoid foreclosure. It has been brought to the notice of the US Government that homeowners are in a rather awful predicament, especially because they are struggling to repay their home loans. Various reports suggest that President Obama’s Mortgage Refinance Stimulus Plan Program shall entitle an estimated 9 million homeowners for a home mortgage refinance at a fixed rate of 4.5%.
As per the US Government officials, the newly launched refinance plan shall enable homeowners to save quite a lot of money. The two mighty lending agencies, Fannie Mae and Freddie Mac, seem to play the key role in the Obama Mortgage Refinance Program. In this program, these powerful lending agencies have taken upon themselves the task of rescuing the homeowners from foreclosure by refinancing their home loans. The only key criterion of the program is that help is extended only to those properties that serve a residential purpose.
As a matter of fact, these lending agencies are in particular targeting to help those homeowners who owe an amount to the bank that is greater than the value of the house itself. Apart from this, the US Government has decided to offer certain incentives to homeowners through the Obama Loan Modification Program. A detailed study of the plan reveals that homeowners can easily avoid foreclosure by resorting to this newly developed loan modification program by President Obama.
According to the Loan Modification Program plan, the interest rates on home loans shall be drastically reduced. It has been speculated that the interest rates may be reduced to as low as 2%. In addition to the interest rates being reduced, the tenure of home loans has been increased, so as to bring down the loan amount.
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