Under Obama’s leadership, the federal government has begun a series of steps to help alleviate the burden that the housing boom-then-bust has caused the American taxpayer and also the lenders. The home refinance stimulus package for mortgage refinancing and loan modification can do some amazing things for you if you are in need and qualify. What do you need to know about this package? Here is some needed information for you.

There are two main components to the package. They are: 1) refinancing and 2) loan modification. With the refinancing plan, the house must be occupied as the primary residence by the person who took out the mortgage. If that condition is met, Fannie Mae or Freddie Mac refinance the loans of any home that is upside down – that is, the owner owes more than the house is worth.

With the loan modification component, lenders and borrowers can agree on different terms for the mortgage. In order to qualify, again, the property must be your primary residence. Also, you must show economic hardship. Once you do that, the lender applies a formula and may lengthen the term of the mortgage up to forty years, reduce the interest percentage, and/or otherwise negotiate terms in order to get the mortgage payment down to no more than 31% of the household’s gross monthly income.

With Obama’s home refinance stimulus package, you may be able to keep your home rather than losing it to foreclosure, even if you are unable to meet your current payments.

If the bad economy has struck your household and you are having difficulty making your mortgage payments, do not wait until it is too late. Contact a professional who specializes in his type of arrangement or contact your lender directly yourself.