| The federal programs provide help to struggling home | | | | or restructure the terms and conditions linked with |
| owners in two ways - by either refinancing the | | | | your current mortgage and make the monthly |
| existing mortgage, or by modifying the existing home | | | | mortgage payments more affordable. |
| loan. | | | | Eligibility for Home Affordable Modification Program |
| Refinancing the Home (HARP) | | | | To become eligible for HAMP, the applicant: |
| It is possible for you to qualify for the making home | | | | Should own and occupy the home |
| affordable refinance program option if: | | | | Should have availed the current mortgage on or |
| Your existing mortgage is owned by Freddie Mac | | | | before January 1, 2009 |
| or Fannie Mae | | | | Should have less than $729,750 owed on the |
| The loan-to-value ratio of your first or primary | | | | existing mortgage (for a single unit home) |
| mortgage does not exceed 125% | | | | Have a monthly gross income more than 31% of |
| Your mortgage payments are current and regular | | | | the proposed modified loan's total monthly |
| The borrower can still qualify for this Obama's making | | | | installments, including the property tax and insurance |
| home affordable refinance program option even if he | | | | Has to provide a convincing financial hardship |
| or she is upside down on the mortgage, but has the | | | | letter containing at least 3 critical factors explaining |
| required loan-to-value ratio. The HARP program is | | | | why it's difficult, if not impossible to make the |
| basically meant for home owners whose mortgages | | | | monthly mortgage payments and remain current with |
| have depreciated in value in the recent times, and | | | | the existing mortgage |
| the collateral fails to provide enough financial | | | | If you want to modify your existing loan and avail |
| guarantees for the existing mortgage. | | | | the HAMP benefits, mortgage refinance companies |
| Modifying the Loan (HAMP) | | | | can help you become eligible for it. An effective |
| This home affordable modification program option is | | | | hardship letter and proper documentation can help |
| meant for borrowers who have fallen behind on their | | | | you get a reduced interest rate - as low as 2%, and |
| mortgage payments, or are not able to afford the | | | | even extend your term up to a maximum of 40 |
| monthly mortgage payments due to various reasons. | | | | years. Our attorneys can help you work out your |
| If you are currently paying an ARM on your | | | | home loan modification. |
| mortgage and the rate has increased, the | | | | Deciding which Option to Avail |
| modification makes it possible to avail a fixed rate of | | | | It is very important to decide which option is the |
| interest and do away with the ARM. Another | | | | best for you depending upon the current status of |
| advantage of the HAMP option is that it helps in | | | | your mortgage. The refinance option gives an |
| restructuring your existing mortgage by extending | | | | opportunity to completely overhaul your existing |
| the loan term, decreasing the net rate of interest, | | | | mortgage by paying off your home loan and availing |
| and even reducing the monthly mortgage installment | | | | a new "refinanced" loan with a reduced rate of |
| amount. It is one of the best option to save your | | | | interest and affordable monthly payments. The |
| home if you are currently facing a foreclosure, or | | | | modification option provides the same benefits of |
| likely to face it in the near future. For availing your | | | | reduced interest rates and affordable payments, |
| HAMP: | | | | however a new loan is not taken out and your |
| The mortgage loan balance should be less than | | | | existing home loan is restructured to make it |
| $729,750 | | | | affordable. It's recommended you provide your |
| The monthly payment for your main or primary | | | | contact details by filling up online application form, so |
| mortgage (in case you have availed a secondary | | | | federal program expert can call you and provide free |
| mortgage or a home equity line of credit - HELOC) | | | | non-binding help and guidance to help you deal with |
| should be more than 31% compared to your gross | | | | your mortgage related issues and problems in an |
| monthly income | | | | organized and effective way. |
| The main objective of availing a HAMP is to modify | | | | |