3 Ways A Mortgage Assistance Program Can Reduce Your Stress
President Obama and Congress in early February 2009, due to the housing market collapse, enacted the “Making Home Affordable Plan”. The purpose of this legislation was to give homeowners a way to save homes from foreclosure and a fighting chance to keep their homes by forcing edges to develop a mortgage assistance program.
This plan has been designed to help you the homeowner alter the terms and conditions of your original mortgage. Millions of Americans find themselves behind in their mortgages due to the exceptionally high unemployment. In many States unemployment rates a well over 10% some like Nevada are above 14%. Not only the high unemployment numbers but, due to the banking collapse many Americans find their equity has disappeared all together and they owe more on the house than its currently valued.
Many terms are being used describing this mortgage alteration concept. Terms like debt restructuring, loan alteration, alteration of terms, and already mortgage loan alteration. All of these plans average about the same thing. Mortgage assistance programs are designed to change the terms of your loan in order to reduce your monthly payment. The 3 steps are;
1) Reduce your interest rate for the borrowed amount. Most of the interest you pay for your mortgage is paid on the front end of your mortgage. By reducing the interest rate will significantly reduce the amount of your monthly payment.
2) Lengthen the amount of time you are required to repay the loan. Let’s say you are in the 23rd year of your 30 year mortgage. By stretching your loan out to 30 or already 35 years will also reduce your monthly payment. This also can have a negative effect by re-calculating your loan and you will be paying more interest in the earlier years as explained earlier.
3) Reducing your rule amount can also be a viable option for both you and the bank. This option is most assuredly the most difficult option for the bank to use. edges are in business to make money and they hate to lose. For an example, on your street alone, there are several foreclosed homes, you know the ones, the ones that haven’t had the grass cut of the tree limbs picked up in the yard. The edges know the value your home when times were good, is really not worth that anymore. They just need to really take a hard look at the similarities on your street.
If you took a poll of your neighbors you would be surprised at the number of them in some form of mortgage assistance program right now.
We want to provide you all the information to decide whether some sort of assistance program for your mortgage can help you save your home.
Consult a mortgage alteration specialist today.