With foreclosure bugging many of us out there, the government had previously come up with the Loan Modification Plan through the President's office to assist those facing this dilemma of how to salvage their homes. This plan however faced heavy criticism from almost all quarters for the lengthy application process attached to it, as well as the low approval rates for those applying for them, in addition to other complications.
The homeowner must agree to get credit counseling if monthly debts, including the mortgage, exceed 55% of the homeowners gross monthly income. Here are some things that banks and mortgage lenders can now offer you: The bank or mortgage lender can lower your monthly mortgage payment to 31% of your gross monthly income. Home interest rates can go as low as 2% in order to meet these guidelines set by President Obama.
Homeowners will not have to pay any fees for home loan modification. These will be paid by the Government as part of the mortgage bailout plan.
The bank or mortgage lender has the option of setting up a balloon payment at the mortgages end if the monthly payments were too low.
Any balloon payments will have to be paid off in full should the homeowner want to sell or again the Refinance Relief Program . Incentive plans are in place, backed by the government, which will gradually reduce the homeowners principal over the course of 5 years, up to a maximum of $5,000, for making mortgage payments on time. The mortgage interest rates are adjustable after a 5 year period. The low 2% and 4.5% mortgage interest rates are temporary fixes to help homeowners get out of their financial problems. Only one mortgage modification can happen using this mortgage stimulus plan, their will be no renegotiating later down the road after this.
And if you are currently unemployed and struggling to find lenders to help refinancing efforts, the Treasury has agreed to help unemployed homeowners bring down their mortgage payments for up to 6 months while they find another job. Existing incentives have also been added for borrowers with loans that are FHA-guaranteed, and there is also the new benefit of relocation incentive payments for those that are forced to move out of their homes. For the lenders, the Treasury will offer further incentive when loan modifications are accomplished. The Troubled Asset Relief Program will fund these new additions for the Loan Modification Program (reportedly USD 700 billion), while another USD 14 billion will be set aside for FHA's guarantee programs.
Homeowners should now find it a lot easier and appealing to refinance their homes with these incentives from the federal government as the public and the government combat foreclosure together.
The homeowner must agree to get credit counseling if monthly debts, including the mortgage, exceed 55% of the homeowners gross monthly income. Here are some things that banks and mortgage lenders can now offer you: The bank or mortgage lender can lower your monthly mortgage payment to 31% of your gross monthly income. Home interest rates can go as low as 2% in order to meet these guidelines set by President Obama.
Homeowners will not have to pay any fees for home loan modification. These will be paid by the Government as part of the mortgage bailout plan.
The bank or mortgage lender has the option of setting up a balloon payment at the mortgages end if the monthly payments were too low.
Any balloon payments will have to be paid off in full should the homeowner want to sell or again the Refinance Relief Program . Incentive plans are in place, backed by the government, which will gradually reduce the homeowners principal over the course of 5 years, up to a maximum of $5,000, for making mortgage payments on time. The mortgage interest rates are adjustable after a 5 year period. The low 2% and 4.5% mortgage interest rates are temporary fixes to help homeowners get out of their financial problems. Only one mortgage modification can happen using this mortgage stimulus plan, their will be no renegotiating later down the road after this.
And if you are currently unemployed and struggling to find lenders to help refinancing efforts, the Treasury has agreed to help unemployed homeowners bring down their mortgage payments for up to 6 months while they find another job. Existing incentives have also been added for borrowers with loans that are FHA-guaranteed, and there is also the new benefit of relocation incentive payments for those that are forced to move out of their homes. For the lenders, the Treasury will offer further incentive when loan modifications are accomplished. The Troubled Asset Relief Program will fund these new additions for the Loan Modification Program (reportedly USD 700 billion), while another USD 14 billion will be set aside for FHA's guarantee programs.
Homeowners should now find it a lot easier and appealing to refinance their homes with these incentives from the federal government as the public and the government combat foreclosure together.
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