A new mortgage rescue plan was announced in February 2009 that will begin helping homeowners across America in March of the same year. Under the Obama mortgage plan the Federal Governement has set aside roughly 75 billion USD to help the estimated 5,000,000 plus home owners who are struggling with their adjustable mortgage payments.
Will I Qualify For The Obama Mortgage Rescue Plan?
What If I Own More Then Your Home Is Worth?
If you are upside down on your mortgage you will qualify for the new program if you currently have a Fannie Mae or Freddie Mac mortgage. If you are unsure if you have this type of loan the best way to find out is to call your lender. Borrowers with Jumbo and super jumbo loans will not qualify.
You will also have to be current on your mortgage payments and have good credit and the income to refinance into todays low rates. You will also be limited to refinancing up to 105% of the homes current value.
What If I Have Missed Payments and Have Bad Credit?
Under these circumstances the program will give incentives to your current lender to reduce your loans interest rate in order to make it affordable to you. The goal is to have your house payment be 31-38% of your gross monthly income.
You total monthly expenses including bills, mortgage and taxes cannot exceed 55% of your monthly gross income. In additions the new federal mortgage programs only includes your first mortgage and if you have a second mortgage you will have to negotiate with that lender on your own.
Many economists feel these Federal mortgage programs are a step in the right direction and will help many people stay in their homes and help increase falling property values and give a much needed boost to the economy.
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