Bank of America recently announced that it would be making more mortgage modifications permanent. The bank’s announcement is part of a larger initiative instituted by the government last year. The Making Home Affordable Program was introduced to help alleviate the increasing pressure a plethora of homeowners find themselves under as they continue to struggle to keep up with their monthly mortgage payments. The program offers stressed homeowners two options to ease their burden.
Looking to Refinance
As a result of the plummet in real estate values, many homeowners now owe more on their mortgages than their home is worth. This prevents them from refinancing their mortgages to take advantage of today’s low rates. If you are current on your payments and satisfy the program’s other requirements, you may be eligible to refinance at a lower rate. To determine if you will benefit from a refinanced loan, talk to a mortgage lender to see what your new rate, monthly payment, and total cost of the loan will be and how that information compares to your current loan.
In Need of a Loan Modification
Homeowners who are struggling to stay current on their mortgage or are already behind on payments may qualify for a loan modification. A loan modification is a permanent change to one or more of the terms of the loan, providing the borrower with an affordable payment. A loan modification is beneficial to both the borrower and the lender as it prevents foreclosure on the home.
The Home Affordable Modification Program may prove to be a valuable tool in allowing homeowners to get back on track with their mortgage payments and keep their homes. To see if you qualify under one of the above scenarios, contact your lender or conduct research via the program’s website. Finally, be sure to avoid scams related to this program. No company should charge you fees to participate.