By now most all of us have heard of HARP or
HAMP, and maybe even done some initial reading to learn that these are programs
offered by the government (in conjunction with your mortgage lender) to make
your house payment more affordable. While these programs expired December 31,
2016, getting a mortgage loan modification is still a possibility. And, it is
still a good idea to explore this possibility if you are not able to make your
house payment, because if you are granted a modification your house payment will
go down. Paying less each month for your house is a huge benefit of a mortgage
loan modification, and it is also a pretty obvious benefit of the process. But
there are other benefits that you may not have thought of, but should, if you
are having a hard time paying your mortgage bill each month.
Four benefits to a mortgage
loan modification that you may have overlooked
are:
•
One change you may not
have considered is to lengthen the repayment term of your mortgage loan. Just
like a lower interest rate will result in a lower payment, a longer repayment
term will have the same effect. If you are not already at the maximum repayment
term, this is an option to consider and will give you the same benefit of a
lower payment that you get with a modified interest rate.
•
A reduction in the
principal amount due will also lower the amount you pay, and can be an option
when modifying your mortgage. However most people don’t ask for this benefit,
and by failing to do so can miss out on some pretty substantial savings.
•
When your payment is
lower, you have more money to pay off other debts. If you are able to stick to
a repayment plan you can get high interest rate credit cards paid off faster
with the extra money you save on your house payment, and this can save
thousands in credit card interest.
•
Your credit rating
might improve with a modified mortgage, because the lower payment will enable
you to pay consistently and on time. When your mortgage lender reports this
type of payment pattern, your credit score will benefit.
If these benefits sounds good to you, let
us help you with a mortgage modification. We have helped others in your
situation, and look forward to helping you too.
For more information about
the seen and unseen benefits of mortgage loan modifications, call us today or
reach us online at www.law-ri.com.
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