Are you in or facing foreclosure? Has the market value of your home decreased and you’re now upside down? These may be good opportunities to do a loan modification on your mortgage. A “loan mod” as it is sometimes called, is the process of changing the terms of your original mortgage with approval from the lender, and with new laws from the federal government, is not credit based. Losing your job, going from a two income family to a one income family (due to divorce or death of a spouse), being on an adjustable rate mortgage (ARM) where your payments have gone up due to the ARM, or the market value of your home has decreased and you are upside down; these are examples of permanent changes in your finances and may qualify you for a loan modification.
As forementioned, the process’ goal is to modify the original terms of a mortgage agreed upon by the borrower and lender, and may reduce interest rate, reduce monthly payment, modify the length of the loan, or reduce the amount of the mortgage, and many times will include any arrearage placed at the back of your loan. The process starts by you, the homeowner, calling the lender and requesting to do a loan modification.
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The fixed mortgage loan is one of the most popular types of mortgages available. Offering a fixed interest rate from typically one to thirty years this type of mortgage offers financial security for many families. However, while there are many clear advantages to a fixed mortgage, there are also a few disadvantages that you should keep in mind. By educating yourself about both the pros and cons you can make the best decision as to whether a fixed mortgage is for you.
This type of loan is designed to give you the same interest rate that you signed up with for a set period of time. They are usually either 15 year mortgages or 30 year mortgages. A 30 year fixed mortgage will provide you with more money left over each month than a 15 year mortgage. However, the longer the mortgages, obviously the longer you will have to pay it back. Also the longer that you pay the mortgage back, the more interest you will pay overall.
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Are you shopping for a new South Carolina mortgage refinance? Maybe you are purchasing your first piece of SC real estate or just looking to refinance your newly adjustable rate mortgage into a fixed rate while rates are still low.
You have a plan…so now what do you do?
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