Upon taking office President Barack Obama was fully aware of the problems that many homeowners across the country were facing. Many of these borrowers have adjustable rate mortgages that are pushing many people into default and causing other great financial difficulties. Add on the fact that home values have plummeted across America and the need for a rescue plan is high.
With the above mentioned problems at the fore front of their planning the Obama administration introduced the Housing and home owner stimulus plan. Although the Plan was first introduced in February 2009 it started to actually help struggling home owners in March. This mortgage stimulus plan will make it much easier for the millions of struggling home owners to refinance their loan and stay in their homes.
Under this new stimulus mortgage plan home owners will be helped in two different ways. First if you are currently in a Sub prime adjustable mortgage and have late payments and are in danger of losing your home there is hope. The plan will give cash incentives to your current mortgage holder to modify your ARM loan to a fixed rate loan and reduce the rate.
The other form of help in the Obama stimulus will be extended to people who are current on their mortgages but are now in a situation where they owe more then the home they live in is now worth. For these people the program will let them refinance up to 105% of their home value. The only catch is the loan has to be a Fannie Mae or Freddie Mac conforming mortgage and you must be current on your payments.
The new Obama mortgage stimulus will definitely help many struggling home owners and should also help to shore up home values and aid in the recovery of the US economy as well.