Lower Your FHA Loan Payments

houseonmoney250.jpg

If you have an FHA loan, a new loan modification program can help you lower your monthly payments.

Lower Your FHA Loan Mortgage Payments

Have an FHA loan? Want to reduce your mortgage payments? Loans backed by the Federal Housing Administration (FHA) will be eligible for payment reductions similar to the Obama administration's loan modification program.

If you are having trouble making your mortgage payments, and you have an FHA insured loan, you can apply for a loan modification in a program similar to the Making Home Affordable program. This new FHA loan modification program can help you lower your monthly mortgage payments and avoid foreclosure.

How this New Program Will Reduce FHA Loan Payments

By law, the FHA cannot offer interest rates that are available the Obama loan modification plan - which can be as low as 2 percent.

With this new plan, the FHA will allow those with an FHA loan to set aside as much as 30 percent of the total principal balance until the property is sold or refinanced. No interest will be applied to that amount.

By setting aside, interest-free, a third of the principle remaining on your FHA loan, your monthly mortgage payments will be significantly reduced. If the total principle you owe on your FHA loan is $90,000, for example, this new plan will set aside $30,000 of that principle. Now your monthly payments will be based on a principle balance of $60,000, making those payments much smaller.

This new plan will not change the interest rate of your FHA loan. Your existing FHA loan rate will be applied to a lower principle, which in turn lowers your monthly payment.

For more information, visit www.makinghomeaffordable.gov

Refinance Your FHA Mortgage Instead of Modify

If you haven't been more than 30 days late on your mortgage payment in the last 12 months then most likely you will quailfy for the FHA Streamline Refinance program. The FHA created this program to help FHA borrowers refinance quickly; it actually requires less paperwork and less time than the current loan modification program. For more details, see this article titled: FHA Streamline Refinance. It discusses in detail the FHA Streamline Refinance program that FHA has had in place for over 25 years. After you read that article, if you have any questions, then read the FAQ: FHA Streamline Refinance FAQ.

Related Articles

Source: Neighborhood Link
Search All Articles
Related Articles
How To Save On Closing Costs
HomecashsmMany are shocked when they learn how much they owe to close on their mortgage. But there are ways to save before you sign on th
What are the FHA Loan Requirements?
FhaThe FHA makes it easy to secure a home loan. The FHA Loan Requirements are described in detail in this article.
Homeowners Insurance
HomeinstTips on how to shop for homeowners insurance and save money-also avice on flood insurance
Asbestos
Asbestosdanger2_thAn information guide on asbestos and asbestos abatement. Also discusses vermiculite and how it relates to asbestos.

More...
Most Popular
Credit Card Collections Can Garnish Your Wages
Pastdue120Unpaid credit card bills? Credit card companies can sue you to garnish your wages.
Securing Your Wireless Network
Cte1thumbA wireless network can connect computers in different parts of your home or business without a tangle of cords.
U.S. Senators of the 112th Congress
Us_senate_sealSenators of the 112th Congress
How Your Association Can Go Green
GoinggreenthumbAl Gore has warned us about global warming and most of us think we should do something.

More...

Zip Code Profiler

Neighborhoods, Home Values, Schools, City & State Data, Sex Offender Lists, more.

Instant Home Value!