How President Obama’s Mortgage Plan affects Homeowners
October 28, 2009 by Customer Care
How President Obama’s Mortgage Plan affects Homeowners in Des Moines, by Des Moines Real Estate Experts RE/MAX Real Estate Concepts
In order to reduce the number of foreclosures, which have been on the rise recently, Pres. Obama introduced a plan to make homes more affordable. It offers Des Moines homeowners the chance to either modify their home loan or refinance it. They will then be able to get a fixed-rate mortgage at a 2% interest rate. Here are a few major points from the bill that will affect homeowners the most.
#1 – It is no longer necessary to have at least 20% equity built up in your Des Moines home, or the equivalent in cash to be approved for a modification of your home loan. If you have been rejected for refinancing or modification you may now find that you can get an approval.
#2 – This plan permits any Des Moines homeowners, that currently owe more than the value of their home on their loan, the opportunity to refinance their mortgage or modify it.
#3 – Cash incentives are being offered to banks and lending institutions that are willing to help out homeowners in Des Moines that have been caught in the housing market crisis. The approval rate for loans is much higher now, since this plan has been set in place and these incentives have been introduced.
#4 – The owner of the Des Moines home must live in it in order to qualify. Owners of vacation homes and rental housing in Des Moines cannot use this plan unless they reside in them permanently. This is unfortunate because in most cases, when a rental foreclosure takes place the occupants are evicted and must find new housing.
Many people in Des Moines are taking this opportunity to modify and refinance their existing loan in order to save their Des Moines home, or merely as a way to get their finances back in order.
There is a lot of free information available to you about buying, selling or investing in Des Moines real estate. For complete information about the Des Moines real estate market including current homes for sale, property values and more please visit the most complete website online dedicated to everything Des Moines real estate at Real Estate with RE/MAX. Please feel free to contact us with any of your real estate or mortgage related questions and we will be more than glad to answer your questions. Call us at 1-800-708-5890 or email us at dsm@realestateconcepts.net.
Filed under Des Moines Real Estate Blog
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