Are you a home owner that really needs to lower your monthly mortgage payment? Perhaps you need to lower your interest rate, or extend the terms on your current loan? A mortgage modification agreement can accomplish all of this and save your home from foreclosure! Each individual lender has certain criteria and requirements for home owners requesting a mortgage modification agreement.
You need to contact your specific lender to get their guidelines first! Don't submit any financial information to the lender before getting all of the forms you need and doing all of the research! You need to know that once you submit any financial information to the lender, you will not be able to make any changes to it! This is crucial! You need to make sure you fill all of the forms out correctly the first time; you won't get a second chance! The next thing you need to do is calculate a mortgage payment that you can afford! The key here is to understand what your lender's guidelines are.
Generally speaking, most lenders require that your debt ratio be between 34 and 45%.
Basically this is calculated by taking your total monthly mortgage payment (including taxes, insurance and any homeowner dues), and divide that total by your monthly gross income.
This total represents your debt ratio.
You need to figure out what monthly modified mortgage payment you can afford and make sure it fits into the debt ratio required by your lender! Once you have your modified payment amount, you are ready to talk to your lender about the options available to modify your loan.
Here are a few of the basic options available (some variations may apply depending upon your specific lender).
oReducing the interest rate to as low as 2%.
This could be for a limited time or for the life of the loan! oPayments of interest only for a limited time in order to allow you to catch up.
oExtending the term of your loan to as much as 40 years.
oStep Rate Plans: For example 2% for the first year, 3% the second year, 4% the third year and then the final note rate for the remainder of the loan.
oForbearance of Principle: The loan amount could be reduced to 90% of the current value.
The budget you create should indicate the new payment that you can afford! It is important to have that information before you begin to apply for a mortgage modification agreement.
Literally millions of American home owners have taken advantage of modification agreements in order to save their homes! The key to approval is to know the requirements of your lender and following them completely! Do your homework! Fill out the paperwork correctly and you will greatly increase your chance of being approved for a mortgage modification agreement!
You need to contact your specific lender to get their guidelines first! Don't submit any financial information to the lender before getting all of the forms you need and doing all of the research! You need to know that once you submit any financial information to the lender, you will not be able to make any changes to it! This is crucial! You need to make sure you fill all of the forms out correctly the first time; you won't get a second chance! The next thing you need to do is calculate a mortgage payment that you can afford! The key here is to understand what your lender's guidelines are.
Generally speaking, most lenders require that your debt ratio be between 34 and 45%.
Basically this is calculated by taking your total monthly mortgage payment (including taxes, insurance and any homeowner dues), and divide that total by your monthly gross income.
This total represents your debt ratio.
You need to figure out what monthly modified mortgage payment you can afford and make sure it fits into the debt ratio required by your lender! Once you have your modified payment amount, you are ready to talk to your lender about the options available to modify your loan.
Here are a few of the basic options available (some variations may apply depending upon your specific lender).
oReducing the interest rate to as low as 2%.
This could be for a limited time or for the life of the loan! oPayments of interest only for a limited time in order to allow you to catch up.
oExtending the term of your loan to as much as 40 years.
oStep Rate Plans: For example 2% for the first year, 3% the second year, 4% the third year and then the final note rate for the remainder of the loan.
oForbearance of Principle: The loan amount could be reduced to 90% of the current value.
The budget you create should indicate the new payment that you can afford! It is important to have that information before you begin to apply for a mortgage modification agreement.
Literally millions of American home owners have taken advantage of modification agreements in order to save their homes! The key to approval is to know the requirements of your lender and following them completely! Do your homework! Fill out the paperwork correctly and you will greatly increase your chance of being approved for a mortgage modification agreement!
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