Home Loan Modification – Can You Modify to a Lower Mortgage Rate?
Posted on | September 30, 2009 | 1 Comment
Getting a home loan modification can greatly help you avoid foreclosure and stay in your home. By modifying to a lower mortgage rate or mortgage payment could go a long way to helping you save your financial career. If you go through the foreclosure process you are going to find that it will be impossible to buy on credit for almost a decade. This may not sound that bad but in all reality it makes life extremely difficult.
The government mortgage modification program that was created, Making Home Affordable, was designed to help you lower your monthly mortgage payment. The easiest way to lower your monthly mortgage payment is to refinance to a lower rate. WIth average mortgage interest rates currently at 4.95% now is a great time to get a home refinance.
If you have bad credit and you feel you cannot get a lower mortgage rate there are other programs that could help you. If your mortgage is backed by Fannie Mae or Freddie Mac you could have your monthly mortgage payment lowered to 31% of your household income. For more information on this please make sure to do your in-depth research at the Making Home Affordable website.
If neither of these options is available for you it might be a good idea to contact a HUD representative and see what they can do. You might be surprised to find out how many programs have been created by President Obama and his staff. The president knows that getting foreclosed on can ruin someone’s life and he is going to do what it takes to make sure this does not happen.
There is plenty of information on the Making Home Affordable website so make sure to take many hours and possibly days to sort through the data. If you do not understand some of the financial jargon please contact a HUD representative who will help you better understand the information. There are options out there for you so make sure to take advantage of them.
Please make sure to return to Subprime Blogger for all your mortgage and financial news. To stay up to date on the current state of finances make sure to bookmark the current news category below. We offer information on everything from getting a lower mortgage rate to increasing your credit score.
Author: Tiffany Mann
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One Response to “Home Loan Modification – Can You Modify to a Lower Mortgage Rate?”
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September 30th, 2009 @ 8:35 pm
i called my mortgage company to ask about a modification but they said they do not do modifications, only for the military. is that true?