Obama's Home Mortgage Modification Program - Hope for Those who Need Help

Years ago when economist began to predict that a global economic crisis was eminent, most people choose to ignore them. Unfortunately, they were right. People may have been able to ignore the changing economic times even a year ago, but no one can ignore it now. There are a lot of financial specialists who offer valuable financial advice, they are inspiring as they reassure us that there are ways to get out of debt. For some it is too late. It is an unfortunate but true fact that some homeowners will face foreclosure.



Originally the FDIC announced a government subsidized home mortgage modification program, but when it was first announced things were still going well and the program did not get much attention or response. Fortunately for homeowners who are having trouble paying their mortgage, the program has been reactivated. Some might feel that the need to access this program somehow indicates personal mismanagement and failure. Certainly the need for help is not limited to a few Americans, rather millions are struggling to make monthly mortgage payments right now.



There are some things you need to remember when you are considering modifying your mortgage:

You are not paying less principal. You are simply extending your loan over a longer time frame so you pay less each month. In the long run, since interest costs will be much higher, you will be paying a lot more money.

It is always better for you to try to re-negotiate with your bank before you miss a mortgage payment. Honestly and carefully review your budget so you can present a realistic, well-documented argument.



Decide ahead of time how long you will need a reduced amount. As soon as you can, go back to higher payments. Compound interest adds up very quickly and it comes from your pocket.

Do not feel bad or irresponsible or stupid for looking into or even applying for a home loan modification. You are not the only one in this position and the bank still wants to keep you as its customer.

Mortgage Tips For The Frantic

It is a curious fact of human nature that people will haggle over the price of an umbrella, but buy a house on a whim.



We understand small amounts of money; we know what they can buy. �200,000 is harder to grasp; you can't fit it in your pocket. The desire to acquire, combined with the stress of the purchase, can make people do funny things. With this in mind, here are a few tips to review when getting a mortgage.



Watch out for the 'Deal Of A Lifetime', the deal that seems too good to be true.



The company may be saving money by cutting back on their level of service.



When getting a fixed rate: get a written statement which details the interest rate, how long the rate is fixed for, and the conditions attached.



When interest rates fall: try and leave your repayments as they are. You will therefore be paying more than the minimum each month. You'll repay your loan much earlier. When rates rise again you may not have to change your payment.



Consider a fifteen or twenty year term. Try to pay off your mortgage quickly.



Use a mortgage calculator with an amortization function, and see what's possible.



Keep your mortgage as small as possible. Aim for *comfortable* affordability.



You will find mortgage lenders who will stretch your qualification ratios. They aren't doing you a favour. The qualification ratio is the ratio of your total mortgage payment to your total income.



The traditional ratios are: The mortgage payment as 28% of your income; the total of your mortgage payment plus your monthly debt payments as 36% of your income.



Try not to 'churn' your mortgage. Each time you refinance you'll probably incur completion costs and non-refundable fees.



Beware of prepayment penalties. Many 'no fee' credit lines have a pre-payment penalty. This can be very expensive if you are planning to refinance or sell your house in a few years time.



You don't need to sign a mortgage agreement which contains any significant prepayment penalty, if you have good credit. One of the smartest things you can do with a mortgage is to prepay it.



Don't look for a home without being pre-approved. You will have much more negotiating power with the vendor, and may be able to save thousands of pounds.



Get a full, professional survey. Human beings can be perverse; happy to spend �150,000 on a house after a half-hour viewing, but be-grudge spending �500 finding out whether it's worth buying in the first place!



Find out the true value of your home. Get more than one independent appraisal. Compare it with the prices of similar-sized houses for sale in the same area.



Start gathering documents. Provide your mortgage company with documents in good time; don't let your rate lock expire!



Verbal (oral) agreements are worthless. When buying or selling property, always get it in writing.



When you do get your mortgage, check your payments are correct - do the mathematics. There's a one in ten chance you could be paying more than you should.



Review your mortgage regularly - this, and possibly remortgaging, will ensure you pay as little as possible in interest.



Finally, consider the following advice from the U.S. Department of Housing and Urban Development:



Be sure to read and understand everything before you sign;



Refuse to sign any blank documents;



Do not buy property for someone else;



Do not overstate your income;



Do not overstate how long you have been employed;



Do not overstate your assets;



Accurately report your debts;



Do not change your income tax returns for any reason;



Tell the whole truth about gifts;



Do not list fake co-borrowers on your loan application;



Be truthful about your credit problems, past and present;



Be honest about your intention to occupy the house;



Do not provide false supporting documents.



A mortgage is the biggest financial committment most of us will ever make; worth spending a little time on, to get it right!

Use a Mortgage Calculator to Save Money

Securing a mortgage can present a confusion of sorts when trying to sort out what are all the fees charged in your monthly repayments. Using a mortgage calculator can help lessen this confusion while saving a good deal of money as well. Reasons to Use Even people who already have a loan can put a mortgage calculator to good use when trying to determine a faster payoff period of time if making greater repayments. The mortgage calculator can determine the amount of repayment needed to meet loan requirements for a certain fixed period of time.



Through use of a mortgage calculator, a consumer can perform these necessary computations without the need of a finance counsellor or other professional. Use of the mortgage calculator allows a consumer the opportunity to insert various loan details and their substituted changes to create different monthly payments and different repayment lengths to compare several costs for obtaining a mortgage. Insert Loan Factors for Detailed Results A mortgage calculator can use several loan factors such as monthly repayment amounts, interest rates, points, overfall loan costs and repayment duration.



Through altering these factors in several computations, a consumer can examine various repayment options, looking at monthly amounts to determine how much a specific loan amount is going to cost. A mortgage calculator can also determine how a monthly repayment can vary depending upon decreasing or increasing the repayment time period. Find an Affordable Loan Some mortgage calculators can help determine what amount of mortgage a consumer can afford.



This is accomplished entering personal details into the mortgage calculator such as personal income, down payment amount, recurring debt and other present financial obligations and the loan cost details. The mortgage calculator then provides results showing a consumer the loan amount for which a borrower may qualify based on the information entered. The mortgage calculator will also show what monthly repayment amount would also be affordable based on the information entered.



Mortgage Calculators Readily Available The great news is that any consumer with Internet access can find a variety of mortgage calculators by simply entering the phrase, “mortgage calculator,” in a favourite search engine. The results will lead a consumer to quite a few websites where free use of mortgage calculators can be found. Many of these sites are also lenders, or brokers, seeking consumer applications so therefore looking to attract mortgage seekers to the site’s services.



Many of the mortgage calculators found are very user-friendly with explicit instructions detailing how to use and what results/information is provided. Types of Mortgage Calculators Available A good website will provide several online choices providing detailed information from use of specific mortgage calculators that include: Basic Mortgage Calculator that reveals introductory monthly repayment, ongoing repayments, interest paid and total loan costs.



Interest-only Mortgage Calculator which can calculate weekly, fortnightly and monthly repayments calculating costs per term selected. Affordability Mortgage Calculator determines how much a prospective applicant can borrow realistically affording to make a repayment based on a monthly established budget; Budget Calculator helps determine a weekly, monthly or yearly budget where results are inserted into the Affordability Mortgage Calculator.

Loan After Bankruptcy - Mortgage Loans

Filing for bankruptcy can be a very stressful process. Not only does it mean that you are up to your neck deep in debt, but also that you have no means of repaying it, at least any time soon. After the bankruptcy is discharged, you will be debt free, but it will have left a huge stain on your credit report that will stay there for at least 10 years. It does not sound good, now does it? The main concern people have after going through bankruptcy is whether they will be able to get finance in the near future or not.



This is not an easy question at all, as some other things have to be taken into consideration, such as monthly income, possession of assets to pledge as security, etc. As a general rule, it will be hard to obtain finance after bankruptcy, but it is completely feasible. There are no reasons to believe you will not be eligible for a loan. When It Comes To Mortgage Loans… You are thinking of buying a property, a home of your own. It does sound wonderful, you cannot wait to be able to see your kids running around the spacious back yard after a succulent barbecue.



But there is only one issue… your bankruptcy file has just been discharged. As unlikely as this will appear, you will still be able to obtain the finance you need provided that you meet some requirements. Mortgage Loan After Bankruptcy Requirements For Approval This is no exact science, some lender might or might not follow the same rules. I will mention here the most common qualification requirements for anyone who is thinking of applying for a mortgage loan after going through bankruptcy.



1) A couple of years of good credit history. This is not a must, but some lenders might feel more reassured and more willing to finance your dream if they see that after filing, you began making timely payments on all your bills. This will certainly prove that you have left behind the rough patch that led to you filing for bankruptcy and are ready for a new and fresh start. 2) A steady job and salary. This is definitely the most important of requirements and the only one which is also a must. The other ones might be negotiable, but not this one.



It shows the lender that you have high repyment capabilities, which is essential as this is a high-risk lending procedure. 3) Down Payment. Most lenders, if not all, require a down payment, at least a small one. Not many lenders are willing to provide 100% finance on a property, but if you are lucky you might be able to find one who will. It is a matter of thorough research and tons of patience, but if your dream house is your ultimate goal, I am sure you are going to do everything in your power to get a good deal on the mortgage loan.



It is not impossible to get a mortgage loan after going through bankruptcy, you just need to let some healing time go by, one year in the least. I hope you all the best, and may you find the right lender and the perfect home loan.