Obama Refinance Mortgage Plan: Maybe Now You Can Refinance That Difficult Mortgage

Qualifying for a Wells Fargo loan modification is easier for distressed homeowners now, thanks to the Obama federal program. The main advantages of this government loan workaround include (a) a way for millions of American homeowners to get an interest rate reduction, and (b) a chance for homeowners to lower their monthly payments. Read on to learn more about how to apply through Wells Fargo, one of many lending institutions participating in the new federal plan.

President Obama refinance Mortgage plan stimulus package may make it possible for you to get a more affordable mortgage payment and a fixed rate mortgage. The Home Refinance Stimulus Package provides help to homeowners struggling to make high mortgage payments by providing incentives to banks to refinance loans and do loan modifications. $275 billion dollars has been allocated to boost the sagging housing market and prevent the stemming tide of foreclosures. While loan modifications are set up for homeowners facing foreclosure, if you are not yet behind on your mortgage, you may qualify for refinance under this federal stimulus plan.

Eligible borrowers who complete the process successfully will receive a lower mortgage payment equal to 31% of gross monthly income, including taxes, homeowner’s dues, and any other fees associated with the home. To achieve this figure, the program takes the following progressive steps: (a) an interest rate reduction down to as little as 2%, (b) the term of the loan extended to as long as 40 years, (c) a portion of the mortgage’s principal balance deferred. Depending on the individual homeowner’s situation, some or all of these options are available. Under the Obama plan, the same options are available to all applicants, and no negotiation is necessary – either you qualify for the loan modification, or you don’t.

This home stimulus program will offer 15 and 30 year terms at current interest rates and closing costs. This program offers a way for homeowners whose property value has decreased and they have been unable to obtain a more affordable fixed-rate loan. If you have been paying only the interest or some other adjustable rate payment, your payment may actually increase when you obtain a fixed rate mortgage, but in the end, it is the wisest choice while the opportunity is available.
These refinance packages are government subsidized, and will only be available or a limited window of time.

So, in order to get a Wells Fargo loan modification, be sure you learn everything you need to know in order to conform your application to the guidelines, take plenty of time to prepare, and make it as easy as possible for the lender to approve your application. Be sure to do it right, to ensure that you can keep your home.

Learn more about Obama Mortgage Relief Plan Qualifications.