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Mortgage help: Do you qualify?

submitted on March 5, 2009 by MikeG in "Member's Lounge"

Pretty amazing details:

If you qualify, your servicer - the company that administers the loan and to whom borrowers make their payments - or lender will reduce your monthly mortgage payments to 31% of your gross income. The reduction would come mostly through interest-rate reductions - though rates can be lowered no more than to 2% - or by extending the length of the loan to 40 years. In some cases, principal reduction also would be an option.

The reduced payment would stay the same for five years and then gradually revert back to the conforming loan rates in place at the time of the modification, increasing by no more than 1% a year.

  • 17531
    Posted by phunkeey on March 5, 2009 [reply] 0 0
    The best deal is for first time home buyers:

    "A tax credit of up to $8,000 is now available for qualified first-time home buyers purchasing a principal residence on or after January 1, 2009 and before December 1, 2009. Unlike the tax credit enacted in 2008, the new credit does not have to be repaid."
  • 17562
    7 1 1
    Posted by deathbynosleep on March 5, 2009 [reply] 0 0
    I hate that $8000 credit. I bought a house 6 months earlier...I only qualify for the 7500(that you have to pay back). I'm bitter about that.
    • phunkeey
      Posted by phunkeey on March 5, 2009 [reply] 0 0
      Bitterness will get you nowhere: "Assuming an interest rate of 7%, that means the home owner saves up to $4,200 in interest payments over the 15-year repayment period. Compared to $7,500 financed through a 30-year mortgage with a 7% interest rate, the home buyer tax credit saves home buyers over $8,100 in interest payments."
  • 17564
    Posted by YanBz on March 5, 2009 [reply] 0 0
    You should be happy you didn't buy in 2007 or 2006! Wink

    “Better” is the Enemy of “Good Enough”

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