At last President Obama has announced what anyone and everyone connected to the real estate sector has been requesting for a long time. The new Obama refinance mortgage plan announced by the US government has been welcomed by all analysts and loan modification consultants across the country. The plan is a solid stimulus package created to stem the foreclosures which has been one of the biggest contributors to the collapse of the economy. It addresses the core issues of the real estate sector and helps responsible homeowners out of their precarious mortgage situations. In fact if all goes as per the plan, it is the homeowners who will be the real winners here. President Obama?s mortgage plan gives special attention to people who either are struggling with their mortgage situations or threatened with a potential foreclosure. The new package sets aside $75 billion for homeowners falling under various categories so that they get the necessary help that is required from their mortgage lenders and have a more favorable mortgage plan.
Both analysts and loan modification consultants agree that now is the best time to apply for a home loan modification. While Obama?s detailed modification plan will not be revealed until March 4th, it is recommended to apply for home loan modification now because the long line of homeowners looking for a modification will be even longer in the future. Homeowners should not waste any time and immediately contact a loan modification consultant to help them apply for a mortgage modification plan with their lenders. The consultants are in a better position to help the homeowners as they will be able to submit the application as per the prescribed norms set by the banks and make sure all necessary documents along with the reasons for loan modification are in place. By going through a company, homeowners will also save themselves from being taken advantage of by their lender.
The total time period over which the loan amount is to be paid can also be increased which would subsequently decrease the overall amount of the monthly repayments.
Refinancing is also useful in increasing the total cash flow in the market or in the economy on a whole.
This however is up to the lender to decide. The other option would be the VA loan that with an adjustable rate. On average the interest on the loan is adjusted by 1% every year. The duration of this is usually around five years and would typically reach 5%. The only person that knows what is best for you is yourself; never take the first offer that is given to you. It is a common mistake people make, jumping on the very first offer because they are worried or not exactly sure of what to do or what they can do.
What remains to be seen is whether all the measures announced over the last few days is going to help the economy get back on its knees and at least stay stabilize if not improve. But one thing is for sure, homeowners have to act now as if they let go of this latest opportunity, they might lose their chance to secure some stability with their current situation.
Learn more about Obama Mortgage Relief Plan Qualifications.
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