The 2009 Stimulus Plan of the Federal Government has come up with several benefits for the home owners. It has made refinancing and loan modification quite accessible and affordable. Also it would be a great help for the first time home buyers.

Here are some tips to take advantage of Obama's Loan Modification Plan:

· President Obama understands that loan modification must also come with long term affordability, else it is no good. He has changed some major rules on the list. So the first tip to reap the fruit of this program is to gain utmost knowledge on the changes. For this you must go through the Government websites in detail.

· Next, you can contact the counselors appointed by US Federal Housing & Urban development department (HUD). They would not charge you money. Instead they would help you save your home in the best possible manner using Obama's loan modification. The Stimulus Plan has also explained the people that you must not waste your money making the payments you make towards the agents who help you in getting the loan modified.

· Next, in case your loan is owned or insured by Fannie Mae & Freddie Mac, you are eligible for home loan modification.

· The Obama's loan modification stimulus plan has unwritten the clause for applying a change in your mortgage terms, you must have 20% equity holding in the home. Now, the new clause says, if the current value of your mortgage exceeds 105% of the market value of the house, you can apply for the changes. The changes would help you save a lot of money as it would lessen the rate of interest from 6.5% to 5.16%. Also the new monthly mortgage payments would have to be ceiled at 31% of the gross monthly income of the borrower.