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A Loan Or Mortgage Modification Can Save Home Owners Thousands!

Do the math. If you borrow two hundred thousand dollars to purchase a new home this is called “taking out a mortgage”, which in simple terms means you promise to pay that money back over a fixed amount of time, typically fifteen to thirty years (thirty years is 360 monthly payments). But, in order to take possession of that home and live in it, you must pay a certain rate of interest on the money owed on that mortgage loan. When a mortgage first begins, nearly all of your monthly payment will be in the form of interest. But as years go by and more payments have been made, the interest side dwindles and the principal side begins to see a better rate of return.

If that interest rate you promised to pay was high to begin with, you will be paying that rate for the lifetime of your mortgage and that becomes an exorbitant amount of money over the next fifteen to thirty years. Mortgage modification is currently being put to good use as a method of saving people from moving out of their homes due to defaulting on their existing mortgage. The current administration has a program to assist home owners who have bought their home in recent years, while home prices were high, and are struggling to meet their monthly payments. While many have seen their dream home taken away due to foreclosure, those who seek help can get relief through mortgage modification assistance.

The mortgage payment modification programs can help by assuring home owners their payments will not exceed thirty percent of their monthly income if they qualify for the program they choose. Those home owners who have managed to maintain their credit score and keep current on their monthly payments thus far stand a better chance of getting further assistance through a modified mortgage plan. Ask your lender for information on a mortgage modification plan that may help you.

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