Loan Modification Calculator And Obama’s Mortgage Plan
A loan modification calculator is used to figure out how much you can save if you got a loan modification. It tells you whether you qualify or not for the Obama mortgage plan and it gives you an overall figure of how much you have to pay monthly on your new mortgage payment. It is quite simple to use. All that needs to be done is to fill up online forms/simple questionaires. You will find links on the bottom of this article directing to an online loan modification calculator. Best of all, it’s free.
First, you have to know what the Obama Mortgage Plan is? It is a relatively new government program facilitated by the Department of Housing, Urban Development and the Treasury Department designed to help millions of homeowners cope with their difficult mortgages. There is no doubt that the past economic downturn has left thousands of Americans in financial turmoil. One of the major concerns of the Obama Administration is to help these troubled homeowners avoid foreclosure.
This program is known as the Making Home Affordable Project. It has an official website which gives anyone complete information about the project.
With this program, most home owners are given the opportunity to make their mortgages more affordable through a streamline process. It is estimated to help about 7-9 million Americans refinance their mortgages at a relatively lower rate. In order to make the project a success, the government will be giving incentives to both creditors and borrowers.
There are 2 ways for the program to help homeowners. This is through Refinancing or Modification.
Refinancing is designed for borrowers whose properties’ value is now considerably less than before. Because of this, they are not able to take advantage of the current low mortgage rates to refinance their properties. To be eligible for this program, the first mortgage of these homeowners must be 105% or less of the current market value of the property.
Modification, on the other hand, is designed for homeowners who do not have the financial capacity to cope with their monthly mortgages. Many nowadays fall in this category due to inevitable increase in interest rates or maybe even because of a job layback and decrease of income. The objective of this program is to reduce the monthly mortgage payment. The monthly mortgage will be now based on one;s monthly income. The monthly payments will not exceed 31 percent of the individual’s monthly income.
For those who cannot afford even a 2% interest rate on their mortgages, there are provisions included in the program for them too.To make the monthly mortgage payment more affordable, the length of the period to pay the debt could be extended up to 40 years. And in some instances where the borrower is deep in financial problems, he/she would be allowed to defer repayment of a certain amount of the debt. And some part of the debt may even be forgiven.
It is quite easy to find out if you are qualified for the program: simply go to the official Department of Treasury website – FinancialStability.gov. You will find everything you need to know about Making Home Affordable Program there.
All you need to do is answer the questions that are posted on the quiz portion of the site. Complete all forms honestly and completely. After the questions have been answered, the system will evaluate them automatically. If the system decides that you qualify for the program, it will automatically direct you to another page. In this page you will be given a list of required documents that you will need to submit to a loan officer.
The US government is trying its very best to help out all individuals who have been gravely affected by the economic crisis of late. So it you are one of the millions who are in this dilemma, I suggest that you visit their website at once. You should face the problem now and look for a solution before it is too late.
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