President Obama has launched his latest action plan to use $75 billion dollars to give to homeowners, mortgage investors, and loan service companies but also push another $200 billion to help out Fannie Mae and Freddie Mac.
Some key points include:
- People whose monthly payments are more than 43% of their monthly income are lowered with goventment help down to as much as 31%
- Giving cash incentives to borrowers and companies as long as they continue to make payments on time. This will be up to $1000 a year for up to 5 years.
- Allowing people to refinance who owe more then 80% of the value of their home.
It should be interesting to see how this pans out but don’t go run down to your lenders office just yet. Things should start to pan out in early March.
