After getting elects, President Obama vowed to redistribute the wealth in America. In his short time in office he has done just that. Will this continue as he tries to help Americans refinance and stay in their homes?
President Obama ran on the platform that he was going to redistribute the wealth among workers in America. He felt like the rich were getting way too much of the money and the middle to lower class needed some government assistance. He is providing assistance to many through the Making Home Affordable program that allows most home owners to refinance at lower rates. It also allows many individuals a chance to pay a lower portion of their mortgage payment.
With the Obama stimulus check coming each week on your paycheck some home owners still needed some assistance to make their mortgage payments. President Obama feels that 31% of your monthly paycheck should be the maximum amount that goes to your mortgage payment. This was a rule that was set with the Making Home Affordable program. This is only for mortgages that were backed by Fannie Mae and Freddie Mac, but that is a majority of the mortgages in America today.
Refinancing at a lower rate is another aspect of the help that Obama is giving to home owners. In the past, it was the case that you had to have a loan to value ratio below 90% to have any chance at refinancing at a low rate. That has all chanced now as you have have a loan to value ration as high as 105% and still have a chance to refinance your mortgage.
All of these government interactions are an attempt to help the middle to lower class and get the economy stimulated. We will see if it works out the way we all hope it does.
Subprime Blogger offers information on getting low refinance rates which could save you up to $10,000 over the lifetime of a mortgage. The Obama Stimulus Check is something Americans will continue to see in the form of tax cuts on their paycheck.
