A loan modification agreement with your lender could be the answer to lower your monthly mortgage payment so that you can afford to stay in your home. If you are one of the over one million homeowners across the nation who needs help to modify their current loan, then you should take a moment to read about the best way to apply for a loan modification agreement so you can increase your chances of approval and get the help you need.
All lenders have certain requirements in place to determine if a homeowner qualifies for a loan modification agreement. The most important qualification is related to your debt to income ratio. This is a figure that represents the percentage of your gross income you spend on your housing expenses. When you add together your principal and interest payment, property taxes, insurance and HOA if applicable, then divide that total by your gross (before deductions) monthly income, you will arrive at a percentage that represents your debt ratio. Most lenders require that percentage to be between 34% and 45%. It is important to find out what your particular lenders qualifying ratio is before you submit your paperwork.
Once you know your lenders basic requirements for loan modification agreement acceptance, you can start to work on the family budget and arrive at an affordable mortgage payment to present to your lender. Keep in mind, that each loan modification program is different, but many lenders are offering variations of several basic plans:
- Reduction in the interest rate to as low as 2% for a limited time, or to a lower fixed rate for the life of the loan, say 5.5%
- Interest only feature at a reduced rate for a limited period of time to allow you to recover financially
- Loan terms extended to 40 years
- Step rate plans: first year 2%, second year 3%, third year 4%, then final note rate
- Principle forbearance: loan amount is reduced to 90-95% of current value, and the new modified payments on based on that amount-the remaining loan balance is deferred for 7-10 years or until the home is sold.
In order to get the most advantageous loan modification agreement for your family, you should sit down and put together a workable family budget, realistically project what you can afford to pay on your house payment now and in the future, then present your case to your lender with a complete and accurate loan modification agreement application. It is not really too difficult once you know your lender guidelines and have directions on how to complete the paperwork. Thousands of homeowners have gotten the help they need with a loan modification agreement, you can too. Take the time to learn about the loan modification process and save yourself many hours of frustration and stress. Your time and effort will be worth it.
Get the help you need to understand and apply for a loan modification agreement with your lender. The Complete Loan Modification Guide is a low cost, easy to read loan modification handbook that you order and download right online. The Guide will take you step by step as you learn how to complete the required forms, calculate your debt ratio, put together a workable budget, write an effective hardship letter, learn your legal rights, and much more. The Complete Loan Modification Guide provides you with all of the required forms, directions on how to put the whole package together and submit to your lender for approval. You can do this! It is well worth the money to give yourself a fighting chance to save your home. Order and download The Complete Loan Modification Guide today and get started on the path to secure home ownership. For more information about a loan modification agreement, please visit us at: http://www.myloanmodificationcenter.com |
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