In an effort to stabilize home values and to get our nation moving forwards on the way to positive growth the government has pumped trillions of us dollars into the market through various programs. Some of these programs were designed to spur job creation as well as get credit flowing to the consumer and to keep borrowing costs low for an extensive phase of time.
California homeowners who are still feeling the economic strain from the decline are having difficulty budgeting their mortgage, in most cases, and are looking for aid. The trouble with many homeowners is their credit has taken a whack, their mortgage is under water, they are delinquent on their mortgage, or they simply don’t have the equity in their home to refinance, so a home loan mortgage modification is their only option.
Getting a lower monthly payment, for a lot of home owners, would go a long way in getting them back on a more secure financial foundation. Homeowners can benefit from a home loan modification because the monthly mortgage payment for anyone in the home loan modification program is going to be dependent upon their annual income.
Usually, in the home loan mortgage modification program, a homeowner is going to lower their monthly mortgage expenditure to around 30% of their monthly income. This would help many homeowners on the verge of defaulting or foreclosure, but there is a extensive process to undertake before receiving a home loan modification.
They will have to fill out paperwork and go through a trial modification, that is intended to last approximately three months although a few have been longer, and there are testimonies of troubles in the modification procedure when dealing with lenders.
Despite the fact that trouble and frustrations may happen, if you are in need of a home loan modification, talk to you lender and start on the process if you can and if it’s appropriate for you. Even if you hit speed bumps along the way, don’t get bogged down in the process and take into account that a modification might be the thing to save your residence and get you back on your feet.
One such program that has been keeping mortgage interest rates artificially low for some time now is the FED’s mortgage back security (MBS) purchase program. The FED has fully commited to purchasing $1.25 Trillion in mortgage back securities through March 31, 2010. The Federal Open Market Committee (FOMC) has continued to reiterate their intent to terminate this program at the end of March which is projected to have a negative consequence on the direction of mortgage interest rates in the near future. We anticipate mortgage interest rates to climb as much as 0.5% to 0.75% by the summer of 2010. Many real estate and mortgage experts are saying now is the time to buy or refinance that home. With home values down as much as 50% in some areas, and with mortgage rates as historic lows, and homebuyer tax credits available for both first time and move up buyers, at this point is a great time to consider buying that home.
Author Resource:
Lowest-Mortgae.com guarantees the lowest mortgage california for purchasing.
![[Valid RSS feed]](http://www.look4articles.com/images/icon_Rss.png "XML Feed For RSS"){kind=icon}
Category Rss Feed
Print This Article
Add To Favorites
![[Valid RSS feed]](http://www.look4articles.com/images/rss.jpg "XML Feed For RSS")