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How To Get 2% Interest Rate on 30 Year Mortgage

The Obama administration has just announced its plan to help at risk home owners. The plan would create a $75 billion loan modification program that would allow “responsible homeowners” to refinance to interest rates as low as 2 percent. The initiative would only help homeowners who commit to make payments to stay in their home. It will not help speculators or house flippers, the department said.
Here are a few highlights from the plan:

  • Only help existing loans made before January 2009
  • Help those struggling to pay the monthly mortgage and at risk of foreclosure
  • Help those locked out of refinancing because of lower property values.
  • Loans may be modified once between now and Dec. 31, 2012.
  • Participating loan servicers must modify loans where the net present value is greater with modification than without.
  • Servicers will bring payments down to no more than 31 percent of gross monthly income by reducing the interest rate to as low as 2 percent and then, if necessary, extending the loan term up to 40 years and forgiving principal, in that order.
  • The government will share the cost of bringing payments down from 38 percent of income to 31 percent.
  • Servicers will get an upfront fee of $1,000 for each modification, plus “pay for success” fees of $1,000 per year on performing loans.
  • Homeowners who make their payments on time will get up to $1,000 in principal-reduction payments a year for up to five years.

    • Already many of the nation’s biggest banks, including Citigroup, Bank of America, JPMorgan Chase, and Wells Fargo, have said they will participate in the program.  Both Fannie Mae and Freddie Mac mortgage companies have set up contact points for borrowers to determine if their loans are owned or guaranteed by them.

    To find out if you qualified call or click on the links below:

    http://www.financialstability.gov/
    For Fannie Mae, borrowers can call 1-800-7FANNIE or go online to  www.fanniemae/homeaffordable.
    For Freddie Mac, call 1-800-FREDDIE or go online at www.freddiemac/avoidforeclosure.


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    Posted on : Mar 05 2009
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    Posted under Home, Mom & Dad, Uncategorized |

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    Sep 10, 2009 - 02:09:46
    Google-TCW said:

    Hi from google Google-TCW

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