Loan Modification Program - Mortgage Refinance Rates at 2% Can Save Your Home

The plan offered by The US administration called "Making Home Affordable" enables homeowners to have a chance to save their houses from being foreclosed. This is through the help of the home loan modification program. The program is able to lower the interest rates to 2% and even extend the mortgage period of the borrower.

Recently, there has been up to $75 billion allocated to fund the stimulus plan which targets help to homeowners. Most of this money is given to the banks and mortgage lenders who will help the homeowners through the stimulus plans guidelines. The money will then give hope to people struggling, so that they can avoid having their home foreclosed.

Once banks and mortgage lenders will follow the guidelines, struggling homeowners can benefit in numerous ways such as:

• It enables the homeowners to have a refinance on their current loan even though they owe more than the actual market value of their house.

• If the home loan is supported by either Freddie Mac or Fannie Mae, the homeowner is automatically eligible to get the mortgage modification so that they can have a much affordable monthly payment.

• If the value of the home has remained the same or has dropped since you purchased it, it is easier to qualify and get approval for the mortgage refinancing.

• People that have suffered a drop in income or are encountering other financial difficulty now have an easier way to get a loan modification.

• The modified monthly payment does not surpass 31% of your gross monthly income with the mortgage modification to prevent you falling into debt again.

Since there are millions of homeowners that are facing home foreclosure, it is wise to apply for the plan now. The worst step you can take is to hope that something will come up without taking any action at all.

The last thing you want is to be sitting at home fearing every knock on the door and every telephone call when you can take action and save your home.

If this is the plan that you need, you should make use of it now so that you can be able to save money or even rescue your home from getting foreclosed.