"The administration’s plan will actually require the participating loan servicers to reduce the monthly payments so that they are no more than 38 percent of the borrower’s gross monthly income. With the government’s help the payments would come down even farther so that they will be no more than 31 percent of the monthly income. The terms of the loan can be extended to 40 years and for some people the loan can be set at no interest. The plan does not require the servicers to actually reduce the mortgage total principal amount. So the principal amount owed would stay the same." (read entire article) ....."borrowers will be able to get up to $1,000 taken off the principal on their loan every year up to five years if they make their payments on time."
Thanks a lot Obama, with you plan homeowners may qualify for a total of $5,000 off their mortgage principal balance and might get to pay for up to 40 years.
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