Stimulus Plan Overview

To anyone who owns a home and are afraid of having it foreclosed, the stimulus package is incredibly important. There are going to be three main ways that Obama's is going to try to help people stay in their homes. First, 3-4 million people whose mortgages are owned by Freddie Mac and Fannie Mae will be able to refinance with long term, fixed rates, possibly in the low 5% range. Second, people who might be foreclosed upon in the near future will be able to do a co-payment plan with funds from the government. Finally, the government is going to give Fannie Mae and Freddie Mac an additional $200 billion. While these measures may not be enough for those in the worst markets of the Southwest and East, they may keep those markets, such as the Northwest, that are in fairly good shape from ever getting that bad. In addition to aiding homeowners, the stimulus plan also has good news for first time home buyers- an $8000 tax credit for those that purchase between January 1, 2009 and December 1, 2009!