If you own a home and want a cheaper home loan than the one you have now, the Obama Administration has recently unveiled a new program for current home owners called “Making Home Affordable.” With "Making Home Affordable" you can modify or refinance your existing home loan to reduce your monthly loan payment to a cheaper amount. You can get immediate help at the Homeowner’s HOPE hotline at: 888-995-HOPE (4673). Obama's "Making Home Affordable" home loan programs include the following options:

Home Affordable Refinancing - If your loan is held by Fannie Mae or Freddie Mac and you want to refinance into a more affordable mortgage – this program is for you. In order to qualify for this program you should be making your mortgage payments on time.

Home Affordable Modification – If you are having a hard time making your monthly mortgage payment, possibly due to a job loss or increased interest rates, and need a cheaper loan this program may be right for you. In order to qualify, you will have to show proof that you will be able to make the lower payments. One question to see if you qualify is “Is your payment on your first mortgage (including principal, interest, taxes, insurance and homeowner's association dues, if applicable) more than 31% of your current gross income?”

Second Lien Modification Program – This program will help homeowners who are having a difficult time making their loan payment because they have a second lien. If you qualify for a first mortgage loan modification, and you hold a second mortgage, then this program will help to reduce your home loan on the second mortgage. Banks that participate in this service include: Bank of America (including Countrywide), Citi Mortgage, Inc., Chase (including EMC and WaMu), and Wells Fargo (including Wachovia).

Home Foreclosure Alternatives – If you want to get out of your loan because it is too expensive but you want to avoid ruining your credit with a foreclosure, the Home Foreclosure Alternative program will pay homeowners $3,000 to move and complete a short sale or deed-in-lieu of foreclosure.

If you do not own a home but are ready to buy a single family home and are looking for the cheapest home loan available, the government can help here too. Ginnie Mae allows mortgage lenders to get a better price for their mortgage loans in the secondary market. With these benefits the lenders can make cheaper mortgage loans available. Ginnie Mae then guarantees investors the timely payment of principal and interest on mortgage backed securities.

If you want the cheapest home loan possible, then you will have to have the following: a Good Credit Report, Good Income to be able to make the monthly payment and a good debt-to-income ratio. Your debt will include all car loans – student loans - credit cards. If you have credit cards you don't use, cancel them. Inactive credit cards are still considered potential debt.