How to Lower Your Mortgage Payments If You Can't Refinance When Facing a Financial Hardship

Millions mortgage refinancing homeowners can't refinance their mortgages, due to home values decreasing well below their current mortgage balance. The recent downturn in the housing market has caused sharp decreases in home values across the country. Some areas were hit harder than others. Others had an unexpected job lost, medical expenses or child tuition payments due, causing a financial hardship to stay current mortgage refinancing mortgage payments.

Recently, the government issued new guidelines for homeowners having trouble making mortgage payments under the "Home Affordable Refinance" and "Home Affordable Modification" Programs. These new programs will help millions of homeowners to lower their monthly payments. But there may be some limitations for millions of additional homeowners.

The Home Affordable Modification program's 1st mortgage limit is $729,750. So if you owe more than $729,750, you can not participate in this program. (More on loan modifications later)

The Home Affordable Refinance only allows for loan to value ratios up to 105%. The program is an option for homeowners meeting those guidelines. As mentioned earlier, many home values have declined sharply in the past few years, with a good numbers way above the 105% loan to value limit. These homeowners are considered "underwater", owing much more than what their homes are worth. These homeowners would not be able to refinance under the program's current guidelines.

So how can homeowners falling behind on mortgage payments due to financial hardship possibly lower their mortgage payments without refinancing?

They can restructure their existing mortgage terms with lender approval. This service is commonly called a loan modification. What exactly is a loan modification? A loan modification allows the lender to lower the interest rate, change from adjustable to fix rates, defer and / or forgive any arrearages or change loan programs, thereby lowering your mortgage payments. Before the housing downturn, repayment plans and forebearance agreements were the norm. A loan modification is a relatively new option that is more common today in the mortgage industry.

When faced with late payments, homeowners will usually contact their lender to make payment arrangements. But you may have a hard time speaking to someone, due to the high volume of calls. Most departments that handle delinquent mortgages are under staff. When you do get through, you may get the run-around, being transferred to different departments. Due to frustration, some homeowners simply give up.

Negotiating for some homeowners may be a bit intimidating to say the least. Obtaining a loan modification can be done, usually between 1 to 3 months and in some cases longer. Also check the U.S. Department of Housing and Urban Development's website for useful information and resources.

Another option you may want to consider is hiring a professional loan modification service provider. Many owners of these companies have many years of experience as mortgage brokers, loan officers or have worked in the real estate industry. These companies specialize in negotiating on behalf of homeowners to restructure their mortgage loan to more affordable terms. They charge a fee, but they will aggressively work on your behalf until your loan modification is approved. Regular,repeated follow up calls to your mortgage company is key to successfully obtaining a loan modification.

A good company will already have contacts at the lenders who handle loan modification negotiations and has the authority to make changes on your loan. A good loan modification company will also have a dedicated staff of case managers working on your behalf and making regular calls to your lenders until a decision is reached with your file. Persistence pays off.

Be careful of loan modification companies that charge enormous upfront fees. Some companies will charge anywhere from $1,500.00 to $3,000.00 or more to work your file! This is way too much money to pay, especially then homeowners are already struggling to pay their mortgage or any other debts. Believe it not, there are service providers out there who honestly want to help their clients and charge reasonable fees, under $1,000.00.

Also beware of scammers who are taking an advantage of the housing crisis to prey on homeowners with financial hardships. Some of these firms take money from homeowners and don't deliver on their promise to perform agreed upon services. A reputable company will perform a free consultation to see if they can actually help the homeowner. If not, no money should be exchanged.

Besides refinancing or modifying a loan, homeowners may decide they can no longer afford their home and may have to sell. A "Short Sale" in which the lender agrees to reduce the amount owed may also be negotiated by loan modification companies. The proceeds of the sale after expenses goes to the lender. This type of sale prevents the homeowner from further damage to his or her credit and avoid a foreclosure mark on their credit history.

If the service provider can determine there is a good chance that your case will be approved, then a submission file is sent to your lender. It is very important that the file contains all required paperwork. Without it, this can cause delays in processing your file. Time is of the essence! The lender will request pay stubs, two years tax returns, bank statements and a list of your monthly bills and income. A financial harship letter is also needed so that the lender can get a true picture of your unique situation. Once a decision is made, the lender will send an amendment letter to confirm the loan changes.

In conclusion, only you can decide which option is best for you.

Desmond Primus has been in the financial services field for 19 years and strives to provide consumers with informative articles. If you would like more information, please go to: http://www.beckleycredit.com/main.html

Refinance Rates - Pay Back Strategies - A New Look

Refinancing is a process where a debt is refunded or restructured with a new debt. Why should one go for refinancing? What does it take to refinance all your savings? Basically, opting for refinancing can have several causes. It may be to reduce one's monthly or long payment durations or to reduce alter risk. This can happen when you want to end your repayment time and has no other way to go. In essence, this type of process can severely change the monthly payments owed on the debt or altering the terms of the bonding.

The best feature of this refinancing method is it may reduce total borrowing cost and speed up total mortgage refinancing flow. Now refinancing can be done by any kind of issuer of the debt that can be corporations, corporate sectors, governmental bodies as well as the common people. It is a pretty common and popular thing among the real state holders (owners of home properties etc). Throughout this whole process payment is made in cash and nothing new security deposit is needed. It is just a type of replacing.

Governmental bodies tend to refinance three on going debts to facilitate the current interest rate from the market. By refunding these sectors also gain some unused lend capacity. Just they have to deal with two conditions:

* Whether its right time to refinance and most important one that is
* The type of security needed for the exchange.

If any kind of issuer needs to refinance before the valid expiry or maturity time of the current issue the need to declare call provision. It can be done only refinancing mortgage a fixed price and price must be over the face amount or face value. Again some bonding ensures a deferred call where under the deferment period you can't refinance (usually of 5 to 10 years).

Refinancing lenders commonly acquire a certain percentage of the total loan amount as a refinance rate. This value is expressed in premium or in a rather convenient way which is called point. A point is equivalent to 1% of total debt. So one is going for refinancing and is issuer charges three points he or she or the sector has to pay 3% of the total debt. Different lenders offer various kinds of premium and interest rates. Paying more points at a time reduces the interest rates.

However, on the other side some refinancing issuers offer negative points or discounts. Points can be delivered by the saving amount from previous owner among refinancing rate process; there are two major ways to go for. No closing cost in corporate lower payment but just ensures that your current rate is 1.5% lower than market rate. The second process cash out involves less mortgage periods where you have a chance for home improvement opt for it.

Why these issuers are lending you money at a lower rate the previous one. Don't worry through yield spread premium they get there all money back because they are helping the company by diverting you from a huge interest rate and saving lot of bucks for the company. There are some risks involved in these total interactions. Several penalty clauses are mentioned in the bonding indices. Or sometimes it renders the borrower to higher risk than the existing debt. So be careful when you are investing. Watch out the stock market situation. Don't go for saving alternating minimum tax. Just think carefully, find the real target with a negotiable and acceptable refinance rates issuer and that's the easiest way your burden pays off.

Angela Dolson is a retired banker and at present he deals with fixing of refinance rates of a particular organization.

You Can Get Good Home Improvement Loans

If you are considering buying a new home but are worried about the price you might consider an alternative if you already own a home. Right now there are many lenders in the United Kingdom that are offering good interest rates mortgage refinancing easy repayment terms on Home Improvement Loans. These Secured Loans refinancing mortgage you to use the equity you have in your home as collateral for a loan that can let you fix up your home.

With these Home Owner Loans you can make some much needed repairs to your home or do some renovations like upgrading your kitchen or other rooms. You can also get the money you need to add a room or two. For example, if your family has grown since you bought your home you may need to put in an additional bathroom or bedroom. You might also just want to add a family room where your family can enjoy some recreation. With a good home improvement loan you can do all of this and even buy some new furniture.

These secured loans will help you make your home more attractive and livable. You will also be able to increase the amount of equity you have and increase the resale value if you do decide to look for another home to purchase later. You may also want to look into Home Owner Loans if you originally financed your home when the interest rates were much higher. If you refinance your home at a lower rate you can reduce your monthly payments and possibly save thousands of dollars over the life of the new loan.

It's not that difficult to find the best homeowner loans. There are many lenders with websites on the Internet that have a lot of money to lend. You can look at these sites to find out about the companies and what they are charging for Home Improvement Loans. You can even calculate how much your monthly payments will be and find out the other terms and conditions that are being offered.

It's also easy to apply for these homeowner loans and you can get other loans such as personal loans or Debt Consolidation Loans. The application can be made online or by telephone and you won't have to wait days to find out if you have been approved. You will often know within a few hours. This makes it easy to shop around and compare loans. There are also websites available where you can find experts who will shop for the loans and compare them for you.

These professionals will take your information about the kind of secured loans you are looking for and search for the ones that best fit your needs. They will often bring you offers from several different lenders to choose from. There is intense competition among lenders to make Home Improvement Loans and other personal loans or homeowner loans so it is best to compare loans before making a decision. Once you are approved for a loan you will be pleasantly surprised by how quickly the loan will close and you will get your money.

Secured Loans from DBS Finance, we search the entire UK Secured Loans market and are backed by one of the largest UK loan brokers that find Secured Loan solutions tailored for you. Decisions in 15 Minutes, Try us today. We work hard to find the ideal secured loan plan just for you, start your application today.

Countrywide Loan Modification - Will They Work For You?

There are some issues you may encounter if you choose Countrywide loan modification plans and not many are fully informed about these issues that you could encounter. Even though Countrywide has been offering loan modifications to make not everyone is having the luxury of being approved because the qualification guidelines are very sticky to mortgage refinancing through.

If you want higher chances of being approved for a loan modification from Countrywide you should get yourself prepared before you even make your first call to them and submit the application forms.

Now you are probably wondering what exactly you need to be approved and the information is very similar to many other lenders, except Countrywide is a bit pickier with whom they give loan modifications to.

When you first begin your application forms make sure that you have sat down and wrote out a hardship letter. refinancing mortgage hardship letter is used to explain the various circumstances that have caused you to be unable to pay your loan payments and how you've attempted to get through the situation. You should also explain the ways you plan on getting back on your feet financially so they know that they'll receive the money owing without any more problems.

Other then your hardship letter you are also going to need to supply proof of income with your pay stubs and another other type of income statement you receive including unemployment. Along side these pieces of information you will also need to supply your tax returns for at least two years time.

Make sure that when you are supplying all this financial information that everything is completely accurate and complete. If you file information that is incorrect you could find yourself being denied the loan modification you've applied for and struggle to get reconsidered in the future.

Don't find yourself missing out on the opportunity of getting your financials in order because you filed your documents incorrectly. If you take the time to be organized so will Countrywide so take the time to go through all the necessary files and get it right the first time.

Countrywide loan modification has become quite beneficial for all those wanting to get back that financial stability again. Avoid going into any more debt and consider a loan modification to help you get your life back together. Just prepare yourself properly and you will be on your way to receiving the necessary assistance you need to start fresh.

If you would like to know more about Countrywide loan modifications, visit the #1 loans modification resource on the net: http://HomeLoanModifications101.com

Getting the Best Mortgage Refinance Rates - Your Credit Score

There's one critical piece to getting what you want out of a mortgage refinance. Your credit score. It doesn't matter how much or how little equity you have in your home, or even what your current rate is. Without a credit score that isn't at least in line with the national average, you will not find someone able to work with you.

The purpose, of course, or a mortgage refinance is to lower your rate in order to reduce your monthly payments. By taking advantage of today's rock bottom interest rates, many home owners can shave several hundred dollars off their mortgage payment ever single refinancing mortgage That's a few thousand dollars a year that could be saved which would ordinarily mortgage refinancing to pay interest.

Refinancing your mortgage can be a very smart move, financially, but in order to pull it off you have to make sure your credit score is in good shape. If your score is not in the best shape, there's nothing to worry about. There are many things you can do yourself for free in order to quickly improve that score and get the rate you deserve on your refinance.

For instance, did you know that there is a very good chance that there are errors and negative marks on your credit report that don't belong there. The credit reporting agencies make these mistakes all the time, and these mistakes make your score appear worse than it really should be. But by taking two minutes to look over your credit report online, you can quickly identify those errors and notify the credit reporting agencies right then and there, online.

By law, the credit reporting agencies must investigate the error, remove it, and make the necessary adjustments to your score. As a result, you'll be in a much better position to demand the best possible rate on your mortgage refinance.

Review Your Personal Credit Score

Take 45 seconds to see how you compare to the national average at http://www.thecreditfix.info

Conventional Mortgage Loan - Why Are They the Ideal Loan Choice?

A conventional mortgage loan is the most established of all the mortgage loan options.It has a steeped history that has spanned hundreds of years that has passed the tests of time.This durability and strength is made possible mortgage refinancing of some of the inherent benefits of this mortgage loan option.Here, are just a few of the reasons why a conventional mortgage loan reigns supreme:

1.Large number of payback options, lenders and low interest rates.

The number of conventional mortgage loans make it a viable option for banks and lending institutions to more easily bundle and sell in the secondary market.This flexibility means that payback options and interest rates will be more generous than other mortgage options.With less restrictions on these loans, lenders are much more able to move these loans and give more lenient terms to home buyers.In addition, the larger down payment placed on these loans creates less credit risk for lenders which allows them to offer lower interest rates for financing.

2.Can set loans without PMI after 20% equity is met.

After a large down payment of 20% is met or is later reached with payments, private mortgage insurance is no longer required.This is nice because it means the monthly mortgage payments will be lower because the PMI cost will be avoided.This cost savings can help potentially result in you being able to get better terms for refinancing or help pay off the loan sooner.

3.Less limitations in terms of qualification and mortgage limits.

One refinancing mortgage advantage of a conventional mortgage loan is that you can get a larger amount of financing and qualification standards are lower for FHA loans.This alone makes it the ideal lending option for buying the larger and more expensive homes which you would be locked out of with other home loan options.The reduced qualification standards are made possible because you are not having to go through the government to get financing and that home buyers are incurring more of the risk in comparison.

4.Nonconforming conventional loan options for those with weaker credit.

A poor credit history can be overcome with nonconforming conventional loan options.These options allow you to still get the other benefits of conventional loans although you are likely to not get as good of terms for interest rates.This is due to the increased credit risk.However, the main advantage here is that weaker credit ratings do not prevent you from gaining these other benefits.

With advantages like these, it is easy to see why more and more people seek out the conventional mortgage loan.

For more information on Conventional Mortgage Loan, visit the previous link or http://www.homeloansandrefinancing.com to get some solid tips and information on various home loans and refinancing options.

Urgent Refinancing

In times of financial emergency, refinancing can solve a number of problems. Cash out refinancing can pay any arrears on loans, and also pay off loans at higher interest rates. Refinancing for debt consolidation can allow for a lower monthly interest bill, and refinancing a mortgage can often reduce monthly payments significantly, making the difference between financial struggle and having a little breathing space.

Emergency refinancing is not something one plans to do, but there are times in life when unforeseen circumstances make it necessary to refinance in a hurry to solve a pressing financial problem. Whilst it is preferable to plan for mortgage refinancing and follow the process of refinancing in at your own pace, there will always be a proportion of people who find themselves in need of emergency refinancing.

It is vital to avoid foreclosure. If you think you are in danger of foreclosure, you must act immediately to prevent your lender from starting foreclosure action. Nobody wants you to lose your home, believe it or not, even the refinancing mortgage would rather not foreclose if you gave them any other viable option.

It is very important to be proactive when you start to fall behind with your mortgage payments. In the current economy, the banks will do just about anything rather than put another home on sale in a depressed market. Sometimes, it is a simple as refinancing your home to free up some cash and pay off the arrears. Alternatively, you can restructure your mortgage if you think your financial difficulties will last over a longer period.

Even if you have decided that you can't afford to keep your home, it is better to avoid foreclosure by refinancing or restructuring, and then sell your home later for the highest refinancing mortgage price, without the pressure of a forced sale.

Mortgage refinancing can sometimes be the only way out of a difficult financial situation. Once a homeowner has missed a few mortgage payments, for whatever reason, protecting the home from foreclosure may require refinancing. For example, mortgage refinancing could be used to release some of the equity in the home as cash. Known as cash-out refinancing, this form of mortgage refinancing allows the arrears to be repaid in a lump sum.

If mortgage rates have gone down since the original mortgage was taken out, then mortgage refinancing is likely to result in a lower monthly mortgage payment, too. The savings can be applied to further reducing debts.

Debt consolidation refers to refinancing your home for an amount large enough to repay the balance owing on your mortgage, and any other debts such as store cards, credit cards, and personal loans. These loans are usually at higher interest rates than mortgages, because they are unsecured, so refinancing for debt consolidation is likely to result in a much lower monthly interest bill overall. Again, the savings can be applied to repaying the principal.

If your credit is poor, there is no need to despair. Refinancing with bad credit is possible - you just have to look a little harder to find the right lender. Of course, refinancing after bankruptcy presents some difficulties, but it is not impossible either. Bad things happen to good people, and everyone understands that. The important thing is to stay calm and focus on moving forward. No matter where you start, you can follow the steps to financial freedom.

While we don't like to think we need emergency refinancing, sometimes it can be the best thing that ever happened to us, starting us on the path to getting out of debt completely and enjoying true financial freedom.

Today's Mortgage Rates

Mortgage Payment Calculator

Home owners in the US must take stock at this point in time, and ensure they are well-placed to survive an extended period of higher interest rates. Fixing mortgage interest payments at these historically low rates for a 30 year period may well be the best financial decision a home owner could make.

Mark Bennett is a staff writer for Money Talks, and contributes regularly to other financial sites. This article is part of his series on refinancing, which can be seen at EmergencyRefinancing.com.

The Right Time to Refinance a Home Or Condo Mortgage is Now

Refinancing a home mortgage is a very serious financial decision that should mortgage refinancing be done without doing the proper research. No matter what, your number 1 goal over all should be to pay off your home. A home is most likely the most expensive and valuable thing you will ever own. A mortgage refinance can help you own your home faster or cheaper due to better interest rates, terms or conditions. The best reason to refinance a home is to get better rates or to shorten the length of the loan.

These are not the only reasons just the best ones. As an example say you pay 10% interest on your current home mortgage and have 15 years left of payments and then refinance into a 7% rate with the same 15 years left to pay. You will be saving 3% every month on the mortgage payment while still owning your home in the same amount of time. You could also shorten the length of the loan refinancing mortgage builds equity in your home even faster. Shortening the loan length may mean higher monthly payments but a big savings on overall interest payments. These are both examples of ways to reach the ultimate goal of outright home ownership.

All kinds of different situations exist which make a homeowner consider refinancing their home loans. Generally, if you are able to refinance into a loan which has a interest rate of 1% or more (The more the better) you could be in line for savings. This should be just enough to cover closing costs and lower your payments every single month while owning your home in the same amount of time. Do not forget to take any closing fees or costs that may be associated with mortgage refinancing.

Sometimes you may see no cost or low cost closing fees but you should be aware of those. Often the lender makes up for the low or no cost fees by increasing the interest rate or somehow effecting the terms or conditions of the loan. Try to pay any closing fees up front as opposed to adding them to the total amount of the loan. This way you avoid paying unnecessary interest on these fees which could amount to a few thousand dollars. For the most part homeowners report "breaking even" from mortgage refinancing within 3 years from the day of the closing. This takes into account any and all closing costs and fees. You can check online mortgage calculators like the one on my site for a good idea of the potential savings you can get by refinancing a home mortgage.

Refinancing a mortgage just to get extra cash is not a good idea. Putting your home at risk is dangerous and should not be done without extreme research and knowledge on the subject. Although, using the money from a cash out refinance to do home repairs or home improvements which will add to the total value of your home may be a good use of the money. A cash out refinance could also be used if you know you will be leaving the house in a few years and want to use the money until you sell your home.

If you liked this article and would like to see others like it please check my site http://www.refinancingcondo.com It Contains plenty of articles related to refinancing

Why You Should Refinance Your Mortgage

If you're looking for a way mortgage refinancing cut expenses, (and who isn't!) a mortgage refinance may help to do just that. If you're like most people, a good portion of your income goes toward your mortgage payment. Refinancing a mortgage in effect creates an entirely new loan. You can choose to stay with your current lender, or you can select a new one. Once you've signed mortgage refinancing papers, the new loan pays off the previous mortgage. Refinancing will probably reduce your monthly payment and perhaps you'll get a lower interest rate. It's a good way to lower your monthly expenses, and put more cash back in your pocket, where it belongs. Here, we'll discuss some of the advantages and disadvantages of refinancing a mortgage.

Most people refinance simply to save money. If you can lower your loan's interest rate by refinancing, you may be able to save quite a bit over the duration of the new mortgage. If the amount that you save is greater than the amount you'll pay in closing costs, then a refinance could make sense. Your loan's interest rate can be improved by taking advantage of new lower lending rates, or by improving your credit standing.

A lot of consumers use mortgage refinancing to change their loan from an adjustable-rate mortgage (ARM) to a more easily predictable fixed-rate mortgage. The obvious benefit is that you'll avoid the uncertainty of the ARM loan when it reaches that dreaded adjustment period. In quite a few instances, it's possible to use this along with the concept we just discussed, making the loan's interest rate even lower.

Some also choose to refinance in order to increase the term of the mortgage. These people may want to extend the life of the loan so that they pay less each month. But, this plan will also cost more in the long run, in the form of more interest. Conversely, a shorter-term mortgage comes with less interest, but higher monthly payments.

This wouldn't be a well-rounded discussion without going over some of the drawbacks of mortgage refinancing, and here, we'll do just that.

Refinancing may not be such a good idea if the homeowner has substandard credit. Those with poor credit may not be able to refinance an adjustable-rate mortgage, or a loan that comes with a balloon payment. Creative financing may have gotten them into a home, but now they have the hurdle of a bad credit history to get over. According to the Federal Reserve chairman, Ben Bernanke, about 25% of all mortgages are adjustable-rate, and 10% of those mortgages will have their interest rates adjusted this year. Bernanke also said that lower-income borrowers and those with bad credit are a cause for concern, with more and more people going into default on their home loans.

Another drawback to a mortgage refinance is the costs and fees involved, which often add up to thousands of dollars. Some lenders even require a home appraisal as a condition for the loan, which can also be pricey. Closing costs and filing fees will drive the price up even further.A mortgage loan's downfall is when the refinance ends up costing more than it's saving. If closing costs are higher than the amount that will be saved over the life of the new loan, then refinancing may not be advisable.

Beware of the no-cost refinance option. Lenders are able to offer these, because the interest rate is usually higher than it would be if the buyer had paid the closing costs and other fees themselves. It may be worth it to lower the interest rate by a half a percentage point or so, but be sure to read all the fine print and make sure that you are really getting a no-cost deal.

A common type of mortgage loan, the "cash out" option, is now much tougher to get. Cash out loans are those that pay off the existing mortgage, and leave some extra money for college tuition, home improvement, or a vacation. The Federal Housing Administration (FHA) has tightened its lending standards. Where a homeowner with 5% equity in their home could once easily get a loan, now they'd have to have at least 15% equity to even have a chance.

Before applying for a mortgage refinance loan, get in touch with at least three lenders, and ask them for a free quote or "good faith" estimate. Do your homework, by comparing the terms and conditions of each offer, and choose the one that suits your situation best. If you feel like you're in over your head, consult with a mortgage professional, who'll help you decide if refinancing is right for you.

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