There are lots of people suffering from the non-repayment of their home mortgage loan in America and the present government has taken a solid and smart step towards the betterment of the situation. But there are many people who don’t know exactly how to qualify for them and how this home refinance stimulus plan will help them out of this traumatic situation. Here are some tips that would help in realizing the eligibility criteria fixed by the government for this refinance stimulus plan.
If the borrower finds that the value of his house has dropped more than 15% of the real value, then he is eligible to take the advantage of this stimulus plan. This plan has made refinancing of home loan simple, easy and fast so that the homeowners are able to get benefited by the Government’s fixed rate of interest of 2%. Both the President and the Federal Reserve are trying to fix the rate of interest on home loans on 2% and they are working out the solution and the result will be soon in front of the people.
The only condition for applying for home refinance stimulus plan is that the borrower should be living in that house and should have the amount to pay off the remaining debt. This is also very important because to get your loan refinanced you have to pay the outstanding loan amount or get it adjusted into the present principal. It depends upon your lender what option he chooses as you can also negotiate with him for the purpose. The main intention of the plan is to help homeowners save their house from foreclosure and also save some money every month from their present income.
The streamlined refinance option is going to help borrowers get out of this situation spotlessly. This means that even if they had been not able to repay their loan installments since last few months, if they choose home refinance option they will have to pay off the outstanding debt and this will improve their credit score, which will be of great help in future.
Also there are different types of people with dissimilar temperament and thinking. Some would like to get their current loan restructured but some would like to finish off the past and make a new start with the home refinancing loan option. The financial condition also depends here.