The fact is, many homeowners payments actually go up with a modification. A typical scenario goes like this: A person got their loan a few years ago and it was an interest only loan. The loan is about to adjust, so they realize their payments are going to increase. They apply for a modification and after weeks of paperwork and calling their lender they learn that their new payment is going to increase with a modified loan, not helping them at all!
Why? Because the new loan terms give them an interest rate of say 4%, which we all agree is higher than 0%, making their payments go up.
Another scenario is where the homeowner does not have their property taxes and insurance impounded into the loan. When you get a modification, these are included in the payments, making your monthly payments higher than they were before.
Well, for those people who are looking to modify, they can now use our free loan modification calculator and determine how much they will save before they apply. You just enter in a few details (you should know these off the top of your head, no need to search through paperwork) and our mortgage modification calculator will tell you if you would qualify and how much your modified payment would likely be.
The calculator uses the Governments Home Affordable Modification Guidelines to determine your payments. There is no guarantee you will be approved for this program, but many lender do participate in it. Many lenders have their own in-house modification guidelines which are usually pretty similar the the governments program.
Here is the Mortgage Loan Modification Calculator:
Click the continue button above to input your data, the next page shows your monthly savings!
After you input your data into the home loan modification calculator, you will see if you are a candidate for a loan modification or not. This is determined by using the data to figure out if your mortgage payment is currently more than 31% of your monthly income.
Next, if you do qualify, you will see what your estimated payment would be. This is very helpful to homeowners. The main reason most people want to modify their loans is to save money! They are struggling to make their mortgage payments each month and are hoping that a modification will allow them to comfortably afford their mortgage once again. If the payment shown is low enough to help you, you will know that all the time spent trying to get your modification approved will be well worth it in the end.
There are many mistakes homeowners make when applying for a loan modification, so you should definitely check out our post on how to get a loan modification approved. You will learn the most important reasons homeowners are denied their loan modifications and how to avoid being one of them! It’s really quite simple once you know what to do.
If you feel that a the loan modification process is quite overwhelming or maybe you are working full time and will not have the free hours necessary to complete a loan mod on your own, you should check out the reviews of no upfront fee loan modification companies. These companies can handle the whole process for you, from preparing your packets to negotiating your interest rate with your lender. It’s definitely worth talking to them, there is no obligation and you just might learn a few things you didn’t know before.
That’s it for this time, we hope you enjoyed the free loan modification calculator!