The Stimulus Package announced by President Obama aims to provide affordability to the home owners. This package provides options like refinance & Obama Loan Modification. Where refinance is a new loan, loan modification is a change in terms of the existing mortgage. The banks are also more inclined to such loan modifications as they are provided $ 1000 for each mortgage modification. Now the rate of interest of your mortgage can go as low as 2% with some financial organization.

Eligibility of Obama's Home Affordable Plan

* You must be a citizen of US.

* You must be above 18 years of age.

* The house in consideration must be located in US.

* The home must be your primary residence.

* You must not have acquired that house as a gift or in inheritance.

* Your loan deed must be owned or insured by Freddie Mac or Fannie Mae.

* Your mortgage must be originated before January 1, 2009.

* It is not necessary that you have to miss some of the payments in order to apply for loan modification.

Check If You Qualify For Obama Making Home Affordable Loan Modification Plan

Besides the mandatory issues, you can qualify to get home loan at 2% if you meet the following requirements:

* If the mortgage amount exceeds 105% of the current value of the house, you can apply for a refinance.

* The 20% equity holding condition does not stand valid any longer.

Check If You Qualify For Home Affordable Refinance Plan

The benefits of such refinance surely include lower rates of interest (up to 2%). The other benefits are as follows:

* The amount of mortgage payment has been restricted to 31% of your gross monthly income.

* The refinance and mortgage modification rates have also been reduced from 6.5% to 5.16% on an average.

How to apply for Refinance or Loan Modification?

· You can directly contact the loan modification department of the bank you want to apply to or can visit their official website.