| The current recession has had many unfortunate | | | | program put into effect by the Obama administration |
| effects on the US economy, and one of the most | | | | is applicable to both Fannie May and Freddie Mac |
| devastating has been an upswing in homeowners | | | | mortgages, which includes most US mortgages, and |
| who are losing their homes through no fault of their | | | | although the participation on the part of mortgage |
| own, either because they have lost jobs or because | | | | lenders is voluntary, they receive government |
| their property has lost a tremendous amount of | | | | incentives. Under the new plan, a loan modification is |
| value, sometimes over 100%. In order to assist | | | | now easier to apply for, since you can apply even if |
| affected homeowners, President Obama has included | | | | you owe up to 105% of the value of your home. |
| a plan to help distressed homeowners to the | | | | Both fixed and adjustable rate mortgages can be |
| Economic Stimulus Package. The Obama | | | | modified, so that your monthly payments are not |
| administration's assistance falls into three broad | | | | more than 31% of your gross monthly salary. You |
| categories: credits on your taxes, grants, and loan | | | | also have an option to lengthen the term of a |
| modifications, the last of which I will discuss further | | | | mortgage loan, thereby also reducing your payments. |
| below. | | | | You can search online by related keyword, such as |
| Since interest rates have fallen down into the 5% | | | | "loan modification" or "homeowner stimulus" to find |
| range (currently 5.16%), this is a good time to | | | | more in-depth information. |
| consider refinancing. The new loan modification | | | | |