Home Mortgage Modification Information

Portsmouth NH Homeowners – Looking for Mortgage Modification Information?

Homeowners in the Portsmouth NH area, and all across the country, in need of some relief on their mortgages may find some hope and help in the latest housing plan to come out of the “Making Home Affordable” program.

If you find you can’t afford your home  mortgage, you may be eligible for modification of your home/condo mortgage.  There are qualifications to be eligible, and you don’t qualify if you can afford your home mortgage and just are looking for help to get a lower rate.

Some of the criteria used to determine eligibility are as follows:

  • The mortgage must be on your primary residence;
  • You must live in your home;
  • The balance on your mortgage must be less than $729,750 for a single family home or condo;
  • If you’re already in foreclosure proceedings, you may still qualify.

To read more about the eligibility details, read this article on the ‘Making Home Affordable Plan”.

Once it’s been determined you’re qualified for your mortgage to be modified, the mortgage servicer will then determine what it will take to be able to reduce your monthly mortgage payment to 31% of your monthly income.

The lender involved in working with you to adjust your monthly housing payment will do what it takes to get your payment to that 31% payment.  Your housing payment includes the principal, interest, property taxes, homeowners insurance payment, and any condo or association dues.  If you have a mortgage insurance premium payment in your current payment, that portion will not be included in the new payment plan.

Lowering the monthly payments to the 31% level will be accomplished in a variety of ways – lowering the interest rate to as low as 2%, stretching out the length of the mortgage to as much as 40 years, or restructuring the principal amount so that only part of it has interest being paid on it.

No matter how the payment is reduced, it will not alleviate the amount you actually owe.  This housing plan is reducing your payments for you for five (5) years, not the life of the loan.  That part of the plan doesn’t get talked about as much as the other parts of the plan have been.  At the end of this five year term, the rates increase by 1% each year until the rate is about equal to the current rate at that time.

If you’re interested in finding out if you qualify for a mortgage modification, contact your mortgage lender directly.

Are you looking to buy or sell real estate here in the Portsmouth NH area?  If so, send me an email or give me a call – I’d love to talk to you about the real estate market and your interest in buying or selling here in the Portsmouth NH real estate homes market!

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