What the Home Mortgage Relief Plan Means To You
by admin ~ February 24th, 2009.
We have all heard about the new mortgage relief program…
What does it really mean to you? Dennis Stearns of the Stearns Financial Group joined us on the GMS to help us break it down.
Here are the highlights:
Who Benefits and How Do I get In On It? One of the biggest groups the plan will help are those whose home loans are owned or guaranteed by Freddie Mac or Fannie Mae. But what if you aren’t one of those? Stearns says most mortgage lenders will mail out letters to homeowners within several weeks of the March 4th start date. If you haven’t heard anything within two weeks of that date, contact your lender.
What About the Government Subsidies? The plan will use government subsidies to cut monthly mortgage payments to no more than 31% of a homeowner’s income. The government will actually write the check for the subsidy to the homeowner’s mortgage lending company or bank.
Borrowers whose mortgage interest rates are much higher than the current market rate should see an immediate reduction in their payments.
Borrowers who are paying interest only or who have a low introductory rate, but will increase in the future, may not see their current payment go down if they refinance at a fixed rate.
Is The Plan For Those Who Are Paying Their Bills Or Those Who Are Behind?
Both. If you have entered foreclosure proceedings your lender may have stopped the process until the White House Plan details are released on March 4th.
Category: Foreclosure news, Mortgage News, foreclosure prevention | Tags: home loans, mortgage interest rates, mortgage lenders