Amidst a turbulent economy, homeowners in the US have been struggling with the growing problem of foreclosures and bankruptcies. Their homes have simply become unaffordable, given the plummeting property values and lack of jobs overall. Accordingly, President Obama has come up with a Stimulus Package to assist such homeowners in gaining control over their mortgages once again. His solution is in the form of grants, loans, and tax credits for which qualifying applicants may apply through their lenders. More information about details on the programs can be found by doing keyword searches on the terms "affordability" and "loan modification".

With loan modifications, homeowners can have their rates adjusted so that their monthly mortgage payments are significantly lower to match their gross income. That alone is critical in helping people save money and build up the economy once again.

So will the new Stimulus affect your mortgage? Here's what you need to know:

Prior to the new plan, your mortgage loan could not be modified if your home equity was under 20%. But now that many people have lost as much as 105% of their home's value, you can apply for a loan modification.

Existing and modified loans owned by Freddie Mac or Fannie Mae are eligible for the programs.

Your new mortgage payment can be up to 31% of your gross monthly income.

Interest rates have changed from 6.5% to 5.16%, making loan modifications that much more beneficial to you right now.

If you currently have an Adjustable Rate Mortgage (ARM) with a variable interest rate, you can achieve a lower, fixed rate.

You can extend the term of your loan by 20-30 years, which would lower your monthly mortgage rate.

About the Author:

For tips and facts about how you can benefit from Obama's Home Stimulus Plan - or to find out if you qualify, visit our no nonsense home stimulus guide: http://ObamasStimulusPackage.net

Author: Joe Emery