With a loan modification calculator, you can tell how much can be saved if you undergo 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 very easy to use. All you need to do is to fill up a few simple questions and you are done. Links are provided below on how you can avail of a loan modification calculator online. It is totally free.
First, you have to know what the Obama Mortgage Plan is? This program is relatively new. It was created by the different fields of government including the Department of Housing, the Treasury Department, and the Urban Development. It’s purpose is to help homeowners deal with now unaffordable 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. However, to be eligible for this part of the program, the homeowner’s first mortgage should be 105 percent at most of the home’s current market value.
Modification – This section of the plan, on the other hand, is for those who find it difficult to pay their mortgages monthly. Many nowadays simply cannot afford their monthly dues because of the increase of interest rates, loss of jobs, drops in wages, and many more other reasons. The objective of this program is to reduce the monthly mortgage payment. The terms of the loan is modified so that the payment for the first mortgage does not exceed 31% of the borrower’s gross 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. There you will find comprehensive and detailed information about the program.
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. The system will evaluate your situation automatically. Once the system determines that you are eligible for the program, it will direct you to the second page in an instant where you will be provided with a checklist of documents that would be needed to be given to your loan officer of choice.
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. The sooner you deal with the problem, the faster you get to calm your woes.
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