Loan Modification 2% Mortgage Rates Offered by Fannie Mae & Freddie Mac

Published by Andrew on March 5, 2009

The Obama administration has helped out homeowners hugely with the new loan modification plan they revealed yesterday.

For struggling homeowners who are facing foreclosure, they can receive 2% mortgages, see their monthly payments drop by as much as $1,000 and homeowners with mortgages up to $729,750 are eligible to participate in the plan.

For many homeowners, loan modifications offer just the right solution to help save their homes from foreclosure and now this plan makes it easier for homeowners to receive loan modifications.

The treasury department will be providing up to $75 billion for the new loan modification program and the ultimate goal is to save 9 million homes from foreclosure.

How Does The New Government Loan Modification Program Work?

The banks will be offered incentives to encourage them to modify homeowners mortgages. The banks will lower mortgage payments to be equal to 38% of a borrower’s income, and then the Treasury department will match the interest rate deductions down to 31% of a household income. This, combined with 2% mortgage rates should allow homeowners to avoid foreclosure, and save their homes.

We’ve partnered with a loan modification firm that is offering free advice to our readers. It’s essential that you take action immediately, and you must contact them today because you can’t afford to wait.