Like a good number struggling homeowners you are probably engrossed in President Obama’s Making Home Affordable loan modification of mortgage program. If you are, you have come to the appropriate place. At RTS Processing I provide indispensable guidelines, tips and application tricks, and completed application files to get you the most excellent modification of mortgage available. Most homeowners are eligible for a home modification loan but are not informed of what steps they have to complete and pitfalls they need to be knowledgeable of when applying for a modification of mortgage. It is my goal to conclude each application to show each homeowners distinctive situation in the best possible light. When deciding if a modification of mortgage is the right step for you, it is crucial to bear in mind the following points.
Who Qualifies For A Modification of Mortgage: Any homeowner who has a mortgage that is struggling to pay it may apply. You do not need to be late on your mortgage. As long as you are struggling and your mortgage is more than 31% of your gross monthly income you are qualified. The government’s modification of mortgage program only covers loans held by Fannie Mae or Freddie Mac. The government has set aside $75 billion to help struggling homeowners. Those who are having a hard time maintaining their mortgage payments can now take advantage of this stimulus and receive a modification of mortgage.
How Low Will The Payments Be with a Modification of Mortgage: The guidelines for the government’s modification of mortgage call for the fresh, modified mortgage payment to not exceed 31% of the homeowner’s income. As a result mortgage interest rates are lowered and partial principle balance may be forgiven. The new interest rate cannot be less than 2% of the mortgage loan. If the lender is not capable of lowering the monthly mortgage payment to 31% of the gross income by lowering the interest rate, the term of the loan could be extended up to 40 years in addition to a lower interest rate. With the modification of mortgage, the lower interest rate is protected for a period of 3, 5, or 7 years. When the period is over the interest rate will rise by one point per year until it reaches the rate of the day the loan was modified. Even after the 2% period, a modification of mortgage interest rate is generally lower than the first interest rate.
How The Government Will Help With Modifying Loans: Under the new loan modifications program, the lenders have to reduce your monthly mortgage payments to 38% of what you make a month. The government then subsidizes the loan so that you only have to pay 31% of your monthly income. The government gives the banks incentives to join the home modification loan program.
You Have To Prove Hardship to Receive a Modification of Mortgage: The modification of mortgage choice is only obtainable to responsible homeowners. The government recognizes that many homeowners, through no oversight of their own, are at present struggling to make their monthly mortgage payment. Due to the present economic recession many homeowners are experiencing financial hardship. As long as you are struggling to make your monthly payments and can show it, you are most likely eligible for a modification of mortgage. You do not have to be overdue on your mortgage payments to qualify.
There are many homeowners who are fit to receive a modification of mortgage but do not meet all the government guidelines precisely. Most lenders present their own in house home modification loans that you can more easily meet the requirements for. If you are struggling and want a modification of mortgage, don’t delay to apply. Call me today and I can aid you to start saving thousand’s tomorrow!
Want to find out more about Applying for a Modification of Mortgage, then visit Hannah Wolf’s site on how to choose the best Modification of Mortgage for your needs.