Obama's Home Refinance Stimulus Plan to Save Your Home

We simply cannot turn on the television news without hearing about another company closing their doors. Talk to your neighbors, odds are good that they have either been laid off, had their hours cut, or maybe had benefits taken away. Take a walk down a busy street, you have probably bumped into a handful of people that are about to lose their homes. Each of us has been hit hard with all of the cuts being made during this economic crisis. Perhaps you are one of those handfuls on that busy street, about to lose your home. Maybe you now owe more than the house is worth, or maybe you just cannot make that monthly mortgage payment with that unemployment check. President Obama has two new ideas to help you save your home with his home refinance stimulus package.

The first option is the "Home Affordable Refinance" plan. This part of Obama's home stimulus package requires that you are current on your mortgage. Basically, this plan will lower your interest rates which in turn will lower your monthly payment. The principle owed will not change, just the interest rate. The equity you already have in your home will also continue to increase under this home stimulus plan. If you are current on your payments and the home is your primary residence, you have until June 10, 2010 to apply for this "Home Affordable Refinance" plan.

The second option under Obama's home stimulus package is the "Home Affordable Modification" plan. In order to qualify for this home loan modification, your primary residence housing expenses must be more than 31% of your total gross income. If you lost your job or had a major medical expense and can no longer afford your mortgage payments you should talk to your bank regarding this home loan modification process. The Treasury Department is willing to help with this home stimulus plan as well. Each month that you make your mortgage payment on time, they may make a payment that will apply directly to your principle. If you qualify for this part of Obama's stimulus plan, over a 5 year span the Treasury may pay as much as $5,000.00. You have until December 31, 2010 to talk to your bank about this loan modification help. The federal government is trying to save our homes!

by Scott A. Kennedy

Know how to get Easy Home Loans

In today's competitive world it is not a tough task to get home loans as there are many banks and independent financial institution who are offering this service to the consumers. Whether you are looking for a mortgage loan or a home equity loan the availability of these loans is in vogue.

These loans are easy to get and also very flexible and tenable. It is perfect for the homeowners especially as it is much uncomplicated. These investment loans are easy available as it is offered by almost all financial institutions and banks. Most of the people who are planning to buy a home depend on the availability of these loans to fulfill their dreams.

There are very few people who have enough bank balance or other saleable property to be able to invest anywhere else. And even those who are financially strong enough to buy a property on their own rather find it beneficial to borrow money from the banks in the form of investment loan as they manage to save tax in doing so. The money that these home owners borrow from the financial institutions is what is called a mortgage and it is secured on the real estate by the "lien". Everyone dream of having their own house. And especially people from the middle class consider it to be a big achievement as it is a very considerable investment that one has to make. This is where the banks play a very key role in fulfilling their dreams. The home equity loan that these banks offer and the services that come along with it are very beneficial to the consumers.

Thus before taking a loan it is very important to understand the terms and conditions of the bank and the policy and the procedure so that you do not end up paying more to the bank then you should. When taking loan the consumer has to mortgage a security document which will allow him to keep the property title while he can use the property as a security against the loan. The money lending institution in turn puts a lien to the property in the event of the consumer does not repay the loan amount.

Once the loan is repaid the lien on the property is taken back or removed. The home loan borrowers need to remember that mortgage points are of two different kinds. The origination point and the discount point. The charge of these mortgage points may differ with every lender. The discount point is used to get the loan at a desired interest rate wherein a certain amount is paid to the lender.

The origination point on the other hand is paid to the lender to get loan in the first place. The origination point is less popular in comparison to the discount point as it offers the consumers with no benefit and is also not tax deductible. Hence when looking for home loans it is advisable to get it form the lenders who do not charge these points.

by Jessisa Thomson

Obama's Home Loan Modification Plan - Helping Out Homeowners Across the Country

Homeowners are facing the worst crisis due to the present recession and the economic crisis. Due to the ever increasing foreclosures, house prices are at an all time low. This is because of the depressed sentiment that even one foreclosed home can create in its neighbourhood. This has caused the peculiar situation that many homeowners are saddled with their home that is worth less than their liabilities on account of its purchase. President Obama, having realised the predicament of the homeowners has now introduced the home loan modification plan to solve these problems.

The plan had a quick start in March, 2009 after being announced just a month before, that is, February, 2009. A part of the plan provides for refinance to the homeowners who are at risk of foreclosure. Traditionally, one is asked to at least invest 20% equity in order to be eligible for refinancing. But the fall in prices have robbed the homeowners of their wealth who no longer can afford such investments. Considering this fact, Obama's plan provides for easier terms for refinancing to enable the homeowners to better manage their payment of monthly instalments and thus avoid foreclosures.

About 5 million homeowners are likely to be benefitted by the plan, which offers ways and means of modifying the mortgage loans. The Government will compensate the mortgage lenders who will work with the distressed homeowners by restructuring their monthly payments at lower levels.

The lenders would be made to reduce the interest rates so that the monthly payments of the homeowners using the loan modification plan will not be more than 38% of their gross monthly income. There are still more possibilities to further reduce the interest rates to make the monthly payments to 31% of the monthly income. For this the lenders can get matching dollar amounts from the Homeowner Stability Initiative of the Government. Considering that the present layoffs have considerably reduced the monthly incomes of the people, often a homeowner may have to part with 40 to 50% of their incomes towards mortgage payments, loan modification plan has become has become an absolute necessity to provide relief to them.

The lending institutions are required to complete a series of steps, as laid out by the U.S. Treasury while providing relief to the homeowners through loan modification. These guidelines would help to make the process more efficient compared to the past initiatives of same nature. What happened in the past was to provide loan modification by linking missed payments with the principal amount. However such an attempt failed to reduce the monthly payments. Now Obama's plan strikes the right chord with the people as they would be required to pay lesser bills and thus have the real solace.

by Lindsy Emery

Buying A Home With Bad Credit

The market is still good for people to buy homes if they have bad credit. At one point in time, having bad credit made it extremely difficult to get a home loan. Fortunately, things have changed, and many people with less than perfect credit are obtaining home loans with decent rates. Getting a home loan with bad credit is doable. However, you must be willing to seek out lenders that offer bad credit loans.

Reasons to Consider Purchasing a New Home

Homeownership is beneficial for several reasons. Individuals who rent their homes or apartments are literally throwing away money. If your rent is $500 a month, in a year's time you would have spent $6000. Instead of making your landlord rich, this money could go towards paying a mortgage and building equity.

Furthermore, if you own a home, you are eligible for certain tax deductions. Owning a home also makes it possible to get extra cash by tapping into your home's equity. Home equity loans and lines of credit are perfect for home improvements, unexpected expenses, debt consolidation, etc.

Choosing a Lender for a Bad Credit Mortgage

Be aware that not all lenders will offer loans to people with bad credit. Although many mortgage companies have started offering sub prime mortgage loans, some lenders will not approve an application if your credit score falls short of their minimum requirements.

Because credit blemishes are common, and the average household carries a large credit card balance, many lenders have begun offering loan programs for all credit types. These loans also benefit those unable to save for a down payment or closing fees.

Tips for Getting Approved for a Bad Credit Mortgage

If you are hoping to get approved for a home loan with bad credit, you may qualify for a better rate if you fix credit problems beforehand. Improving your score by as little as ten points may make you eligible for a slightly lower rate.

Additionally, get multiple quotes by using a mortgage broker. Brokers can help you locate many sub prime lenders that offer bad credit mortgages. When completing a quote request, choose a broker that does not review credit. If your credit is evaluated by four different lenders, it may decrease your score.

Instead, provide an accurate credit description. It may help to check your personal credit report before applying. Once you obtain at least four offers from different mortgage lenders, compare the quotes, and pick a lender. Complete the loan process by submitting an official loan application. The chosen lender will check your credit before finalizing the loan.

by Reginald Ross

Mobile Home Loan Refinancing is Different

With a mobile home you can literally put wheels on the structure and drive away with it, and this increases the risk of the loan compared to a home on a foundation. This is exactly why many traditional mortgage lenders and brokers don't want to work on mobile home loans. Another issue with mobile home loans is that they are considered personal property, not real estate. Therefore, financing a mobile home loan without the land beneath it is similar to purchasing a car or RV.

Mobile homes are manufactured off site, so they are not the same as a standard stick-built home. The laws concerning the financing for mobile home loans vary from state to state, so it is very important to make sure the lender or mortgage broker is compliant with your state laws, and is licensed to lend the funds to finance or refinance a mobile home loan, known as a chattel mortgage. Knowledgeable lenders that have experience in Manufactured Home Loans will be able to answer questions in regards to the laws and regulations in a specific state. The costs associated with refinancing your home mortgage should be similar to the fees that are paid when financing a mobile home purchase.

Most lenders who specialize in Mobile home loans treat them similar to conventionally built homes and will consider refinancing a loan for mobile homeowners who already have built equity. Why would someone consider refinancing their home? There are some really good reasons to refinance a mobile home; lowering the current mortgage interest rate and monthly mortgage payment, paying for children's college tuition, paying off high interest credit cards and auto loans, or making improvements to maintain the value of the home.

Refinancing a manufactured home is essentially getting a new loan with better terms to pay off a current loan, and it usually has one of many benefits. If you are currently in a situation where you can afford your monthly payments, then refinancing your mobile home with a lower interest rate could allow you to pay off your loan sooner, shorten the length of your loan, or easily make additional principal payments towards the principal balance of your loan from time to time. Financing for manufactured homes and mobile homes is available for mobile homes in space rent parks, parks where you own your own lot, co-op parks, and mobile homes or manufactured homes located on privately owned land.

Some lenders like California Manufactured Home Finance, offer a low, flat rate fee, if you are looking to refinance with the lowest fees possible. Most borrowers have the option to go ahead and pay the fee(s) up front, however you can also include the fees into the new loan amount and keep out of pocket expenses as low as possible. Just like a traditional home loan, borrowers can also buy down their interest rate. To do this, borrowers must be charged with points. Points are additional fees that are paid at the time of closing to the lender that is financing your new loan. Usually a point is considered one percent of the new loan amount.

by John Cain