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Lower Your Mortgage Do You Qualify to Lower Your Mortgage?
Chances are you have heard a lot about the new Foreclosure Prevention Plan and Neighborhood Stabilization project but if you are like most people, you aren’t sure whether or not you actually qualify for a lower mortgage. Take this quick quiz to find out if you can start saving hundreds of dollars from your monthly mortgage payment.
Are you currently up to date on your loan payments but have a high interest rate or sub-prime mortgage that no longer meets traditional loan to value margins due to the declining housing market?
If so, you may be eligible to apply for a federally funded mortgage refinance program that can dramatically lower your mortgage payments. Depending upon your specific situation, interest rates may be as low as 2 percent…putting big bucks back into your pocket each month. For example, if your current mortgage is $200,000 financed at 7 percent then those $1,330 monthly payments would drop to only $1,073 by refinancing to a 5 percent interest rate or only $843 at 3 percent.
Are you currently behind on your mortgage but able to keep up with payments if you owed less on the home and were able to take advantage of lower interest rates?
If so, you might qualify for loan modification assistance where the lender, in conjunction with the government, will work with you to reduce the amount of your monthly mortgage to only 31 percent of your household income by reducing a portion of the actual amount owed, lowering interest rates and extending the payback period of the loan for up to 40 years. To qualify for this lower mortgage, the home must be your primary place of residence and the principal unpaid balance must be $729,750 or less.
For example, if you purchased a home for $$460,000 in 2006 and find it is now worth only $378,000 and the mortgage is more than 31 percent of your current household income, then you could qualify for a lower mortgage payment. The government and lender would work together to reduce the amount you owe on the home, basically “forgiving” a portion of the principal owed on the home, resulting in a lower mortgage amount, and provide a new lower interest rate (as low as 2 percent) and longer repayment period. To further entice borrowers to stay up to date on their monthly mortgage payments, you may also qualify for an additional $1,000 per year for up to five years to help pay down the principal.
Call Wendy Powers, at Wendy Powers Realty, for assistance and questions at 386 441-9900. Wendy is a Certified Short Sale Professional and a Foreclosure REOS Specialist! She can discuss many options to help you avoid foreclosure!
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