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!

Servicing the New Hampshire towns of Portsmouth, Newcastle,
Rye, North Hampton, Hampton, Stratham, Exeter, Greenland, Newington,
Dover, Durham and surrounding areas, and the Maine towns of Kittery,
Kittery Point, Eliot, South Berwick, York, and surrounding areas.

Portsmouth NH Real Estate – Home Mortgage Application Tips

Looking to buy a home or condo in the Portsmouth NH
area?

Make sure you start off by getting a written pre-approval letter from a professional lender.

Now that you’ve found the perfect Portsmouth home or condo, it’s time to make your mortgage application.  Here’s what you’ll need to get together for
your lender so you can provide him or her complete information to get your home mortgage in the works:

• –  one month’s worth of pay check stubs;

• –  your last 2 years’ of your W-2 forms;

• –  your most recent 2-3 months’ of bank account statements;

• –  account numbers and contact information on all credit cards and outstanding loans;

• –  child support and/or alimony payments, if applicable;

• –  your last 2 years’ of tax returns, if you’re self-employed.

This information is necessary to process your request for a Portsmouth NH home or condo mortgage, so the more documentation you can provide up front, the smoother and more stress-free your real estate purchase and mortgage process will be.  If your lender requests additional informtation, do your best to get that information back as quickly as you can.  Keep the process flowing and don’t cause unnecessary delays by not providing what’s asked for or by challenging your lender’s need for certain information or documentation.

Here are some other tips to pay heed to while you’re in the home buying
process:

• –  Don’t go out and run up your credit cards or make any big purchases.

• –  Don’t open any new credit cards or charge accounts.

• –  Don’t switch jobs during the process.

• –  Keep all your accounts current and pay your bills on time or early.

• –  Make sure to keep your current mortgage payments paid and up-to-date.

Most lenders these days pull a new credit report and do new verificatons of employment just before the closing.  Any substantive changes in any of your accounts or employment may jeopardize your ability to obtain the mortgage for that perfect Portsmouth NH home or condo you’ve been working
hard to buy.

Be prepared and plan ahead, and your home buying and mortgage experience will be a happy positive one!

Are you thinking about making Portsmouth New Hampshire your home?  Call me today at 603-431-1111 x 3839, or send me an email, and let’s talk real estate!