Economic Stimulus Package 2009 - How Will Obama's New Stimulus Package Affect Your Mortgage

President Barack Obama is all set to balance out the chaos happening in the US economy. In order to stop the rapid flow of foreclosures, bankruptcies and losses to the financial institutions the new Stimulus Package has been announced with a budget of $ 1 trillion. The Economic Stimulus Package 2009 shall give you help in the form of loans, tax credits and grants. It is based on the keywords like 'affordability' & 'loan modification.'

It has come in with a major impact on your mortgage & home ownership deals. Now all those home owners who are having sleepless nights in the fear of a foreclosure might take a sigh of relief. You can now apply for a loan modification quite easily and enjoy a lower rate interest.

Will Obama's 2009 New Stimulus Package Affect your Mortgage:

· Earlier only those home owners who had 20% equity in the home, could apply for the loan modification. Now that is not the criteria. Now if the mortgage amount is more than 105% of the current value of the home, the home owner can apply for a loan modification.

· The loans owned or modified by Fannie Mae & Freddie Mac are all eligible for the loan modification.

· There is a ceiling levied on the mortgage amounts. The new modified mortgage monthly payments can not exceed 31% of the gross monthly income of the borrower currently.

· The loan modifications are done at the lower rates of interest. From 6.5% it has reduced to 5.16%.

· The home owners can shift from the variable rates of interest and ARM (Adjustable Rate Mortgage) to the fixed rate of interest.

· You can now opt for long term loans like 20 years or 30 years.

To know more about Loan Modification Programs and to check if you qualify

Click Here --> Federal Loan Modification

President Obama has offered $1000 incentive for home owners that opt for Loan Modification instead of Short Sale Or Foreclosure

To know more about Latest Loan Modification Programs and to check if you qualify for Government Grants

Click Here --> Federal Grant For Homeowners

Mortgage Payment is Late

Late mortgage payments or not making mortgage payments at all is very common for homeowners in today's economy. Struggling to make mortgage payments may mean you are in some kind of financial hardship and can qualify for a mortgage loan modification. A financial hardship may include temporary job loss, medical issues, divorce or an increase in your mortgage payments due to an adjustment in your payment rate. Many homeowners are experiencing payment increases as much as 40% when they reach an adjustment period under an Adjustable Rate Mortgage. These adjustments can happen gradually over many years or smack homeowners in the face at one time and send them spiraling into debt.

Increases in mortgage payments are not sudden, in fact they are outlined from the time you closed on your mortgage loan. Just like most things in life we do not think about them until they arrive and a higher mortgage payment can throw any budget into a tailspin. Most homeownership advocates will tell you that Adjustable Rate Mortgages were handed out left and right to sub prime borrowers that may of not been ready for a home loan in the first place. Putting a home buyer into a mortgage that the mortgage broker and lender know a homeowner can not afford after it adjust is considered predatory lending. Victims of predatory lending have rights and can seek assistance through loan modification and loan audits.

Loan modification can help homeowners struggling to make their mortgage payments. Loan modification or mortgage modification can modify the terms of your loan, lowering your mortgage rate to a level you can afford. Adjustable rate mortgage loan modification is very common due to the high level in which these loans were sold to poor credit home buyers.

Making late mortgage payments will lower your credit scores, keep you in a cycle of debt and eventually lead to foreclosure. You do not have to struggle with high mortgage payments and rates if you feel you are a good candidate for loan modification.