When home mortgage refinance rates fall then refinancing home mortgages becomes very attractive. But why is it that you can never seem to get the lowest rates advertised? That $1,500 monthly payment on your 6% 30-year $250,000 mortgage loan relief is making you choose between paying your mortgage and paying for your groceries. If only you could find a way to refinance with a 5% rate you could be paying $1,300 a month instead, or even a 4% rate that could cut your monthly payment to $1,200 a month. That extra $300 could pay for a lot of groceries for your family each month. Well... keep reading and find out how to get those lower rates.
Countless Americans, stressed by the current economic realities, face foreclosure or increased problems in meeting the terms of their mortgage loan relief. An increasing number of Americans are laid off, are suffering cuts in pay, and so forth, as their total percentage of income needed to make monthly payments increases beyond the point of reasonableness. The new plan grants qualifying homeowners loan modifications that cut their mortgage to 31% of gross monthly income.
So... that explains why you cannot seem to get those low advertised rates. But wait a minute, some people are getting those rates from somewhere. Those low rates are coming from a special type of mortgage loan known as an FHA (Federal Housing Administration) loan. The U.S. Government Department of Housing and Urban Development (HUD) works with conventional lenders to insure mortgage loans so the lending institution is protected from the costs of foreclosure. This allows the interest rates to be reduced for the borrower to the absolute minimum possible. While most FHA loans are directed towards helping people buy their first home, they can also be used to refinance existing loans. One of the most practical and smart ways to save money, gain equity and pay off debts is by refinancing a high interest rate loan with a new low interest rate FHA loan that can save a person hundreds of dollars a month. Note that neither HUD nor the FHA actually lend you the money, that is still done by a conventional financial institution. HUD and FHA simply insure the loan for the lender. So if the house is foreclosed upon, the U.S. Government will pay the financial institution and then own the house.
Don't let the threat of having a home foreclosed keep an unmanageable loan from being modified. Until the bank has taken the property and sold it in an auction, there is still a chance for the home's owner to get the help they need to stop the entire process.
Not all mortgage loans are eligible. Qualifying loans are for owner-occupied homes. Thus, no short-term investors or speculators will qualify. Also, the borrower needs to supply gross income documentation, and the loan must have originated prior to 2009. Each qualifying borrower is only eligible once. The deadline for loan modification is 12/31/2012. And finally, this plan provides relief only to borrowers with loans covered by Fannie Mae and Freddie Mac.
Countless Americans, stressed by the current economic realities, face foreclosure or increased problems in meeting the terms of their mortgage loan relief. An increasing number of Americans are laid off, are suffering cuts in pay, and so forth, as their total percentage of income needed to make monthly payments increases beyond the point of reasonableness. The new plan grants qualifying homeowners loan modifications that cut their mortgage to 31% of gross monthly income.
So... that explains why you cannot seem to get those low advertised rates. But wait a minute, some people are getting those rates from somewhere. Those low rates are coming from a special type of mortgage loan known as an FHA (Federal Housing Administration) loan. The U.S. Government Department of Housing and Urban Development (HUD) works with conventional lenders to insure mortgage loans so the lending institution is protected from the costs of foreclosure. This allows the interest rates to be reduced for the borrower to the absolute minimum possible. While most FHA loans are directed towards helping people buy their first home, they can also be used to refinance existing loans. One of the most practical and smart ways to save money, gain equity and pay off debts is by refinancing a high interest rate loan with a new low interest rate FHA loan that can save a person hundreds of dollars a month. Note that neither HUD nor the FHA actually lend you the money, that is still done by a conventional financial institution. HUD and FHA simply insure the loan for the lender. So if the house is foreclosed upon, the U.S. Government will pay the financial institution and then own the house.
Don't let the threat of having a home foreclosed keep an unmanageable loan from being modified. Until the bank has taken the property and sold it in an auction, there is still a chance for the home's owner to get the help they need to stop the entire process.
Not all mortgage loans are eligible. Qualifying loans are for owner-occupied homes. Thus, no short-term investors or speculators will qualify. Also, the borrower needs to supply gross income documentation, and the loan must have originated prior to 2009. Each qualifying borrower is only eligible once. The deadline for loan modification is 12/31/2012. And finally, this plan provides relief only to borrowers with loans covered by Fannie Mae and Freddie Mac.
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