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Tuesday, 26-Jan-2010 10:24 Email | Share | | Bookmark
Modify Your Mortgage Rates

How does the new program work? Will it actually reduce FHA loan payments?
According to this new program, the FHA will permit people with an FHA loan to keep away up to 30 percent of the principal amount, until the time the property is sold, or refinance is arranged. Interest will not be applied on that amount. FHA may be unable to offer the interest rates as low as two percent that are available with Obama home loan modification plan. However, the benefits offered are equivalent. If one can set aside, one-third of the principal balance on the FHA loan amount as an interest-free sum, the monthly mortgage installments will be considerably reduced.
For example, if one had borrowed $90,000 from FHA, the new program will make $30,000 of the principle interest-free. And now the monthly payments will be to repay the remaining principal amount of $60,000. Thus, the monthly payments will be much smaller. Obama loan modifications may increase the reimbursement period to as long as 30 years to facilitate lower monthly payments. Even though the interest rates applied on the FHA loan remains the same, the monthly installments are lowered. The goal of Obama loan modification is to help people save their homes. In principle with Obama’s loan modification scheme, the FHA loan modification program lowers one’s monthly mortgage payments, and prevents foreclosure. This is the best scheme for homeowners who want to safeguard their houses against foreclosure.

When can you refinance instead of modify?
If one has not defaulted by more than thirty days in the last one year, then one has the option of refinancing by the FHA streamline refinance program. This program has been designed to help borrowers refinance as fast as possible. It involves much less paperwork, and lesser processing time as compared to a loan modification program. Do not spend all your time thinking. Act fast, and take maximum benefits from these loan modification and refinancing options. . Make Your Home Loan Affordable Start Here.

Saturday, 23-Jan-2010 06:14 Email | Share | | Bookmark
Information About FHA Streamline mortgage refinance

Homeowners take pleasure in the advantages of investing in their assets year after year. For some, there comes a time when that investment could come in useful. Refinancing through an FHA loan could persuade be an efficient way to place that equity to work. Sending your child to college, taking a much required vacation, consolidating bills or getting home improvements are few of the technique homeowners tap into the equity they have build up in their home to assist with these expenditure. Bear in mind that FHA refinancing is just accessible to homeowners who are at present using their home as their main residence. FHA provides some different alternatives to homeowners who are bearing in mind an FHA home refinance:

This refinancing alternative is particularly advantageous to homeowners whose asset has improved in market price as the home was purchased. A Cash Out refinance let the homeowners to refinance their present mortgage through taking out an additional mortgage for more than they presently owe, as a result repaying their present mortgage and using the equity they have developed in their home to extract another larger mortgage. This helps the homeowner to get access the equity they have developed in their house and put it to good utilize where required. With the intention of get the most advantage through home mortgage refinancing, it is often best to think refinancing after you got had time to build up a important amount of equity in your house. If the assets were purchased over one year previous to the refinance, the homeowner could refinance the presented mortgage for equal to 85 percent of the evaluated value along with the acceptable closing costs that differ from state to state.

Streamline mortgage refinancing option is measured streamlined as it allows you to lessen the rate of interest on your present home loan rapidly and many times without an evaluation. FHA Streamlined Refinance also trims down on the amount of official procedure which needs to be finished by your lender saving you precious time as well as money.


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