Category Archives: Mortgages

Loan Modification Changes Your Loan Mortgage Agreement

A loan modification may be available to homeowners who are having trouble paying their mortgages. A loan modification will lower monthly payments, making it more affordable. To submit a petition to modify a loan, homeowners do not have to owe more than the property’s value. A loan modification may also be available to homeowners with equity and adjustable-rate mortgages. Most homeowners request loan modifications because they prefer to keep their home than let it go into foreclosure. A Score Factor 22 is added to a borrower’s credit record. It can also affect their credit score.

Common Reasons to Refinance Mortgages

Refinancing is an option for homeowners with mortgage obligations to reduce their monthly payments. Refinancing mortgages has many benefits, but there are also risks. The benefits outweigh the risk in most cases.

Not all mortgagors can refinance their loans. Refinances may not be granted to those with low credit scores or who are subject to high penalties. It may not be worthwhile to apply for refinancing if this is the case. This would be detrimental for both the mortgagor and the mortgagee.

Reverse Mortgage Loan to Value – How Is It Calculated?

Each person’s situation is different so the answer will vary. However, it starts with the borrower’s age. In most cases this is the youngest borrower. It also determines the FHA reverse mortgage loan limit (in most areas $625,500) or the appraised valuation and current interest rate. This can give a borrower an idea of the maximum amount they can qualify for. HUD calls this the Principal Limit Formula. It uses a table similar to an insurance mortality table to calculate the principal limit.