23 Help Me Lower My Mortgage Payment — How Can I Modify My Loan for Lower Payments Introduction: Are you paying too much on your mortgage?
Want to know if you can lower your monthly payments? There may be ways to make your home
more affordable. Today I’m going to explain a few of the options available to you.
Hi, I’m David Hicks of Alliance Legal Group. We are a Florida based law firm that focuses
on helping clients avoid foreclosure, often through the very loan modification techniques
I’m about to describe to you. Topic: After the housing bubble burst, millions of
Americans found themselves with enormous mortgage payments on homes that were suddenly worth
significantly less than when they were purchased. This made refinancing a home loan almost impossible
for many. As a result, the federal government created a number of programs to help Americans
modify their home loans or escape from them entirely.
One of those programs is called HAMP, or the Home Affordable Modification Program. HAMP
is the only modification specifically designed to lower your payments. Traditional bank loan
modifications might extend your repayment period or help you get out of a backlog of
debt, but reducing your monthly payments was not the main goal. HAMP, on the other hand,
provides incentives to banks to modify loans for homeowners with an eye specifically toward
reducing monthly payment amounts. Of course, if you do not qualify for HAMP
or you need relief that is different than what it can offer, you can sometimes seek
a bank’s internal modification. An internal modification is going to be an agreement between
you and the bank to modify your loan. These are often to help you get your payments back
on track, not to specifically lower your monthly payment. Nevertheless, it can have that effect
if structured properly. Because it is an agreement between you and the lender that is outside
of the loan modification rules of HAMP, it is more open to the whims of the bank, and
obtaining such a modification is anything but guaranteed.
In some instances, the bank may extend the term of your loan. This could both allow you
to roll missed payments to the end of the repayment cycle and reduce your monthly payments
by extending the period over which they are being made.
Alternatively, rather than extending your mortgage, a bank may be willing to reduce
your interest rate. This will usually lower your monthly payment. Some banks may require
that your mortgage be current, or that you get it current before the new interest rate
will apply. Finally, in some cases, the bank may actually
agree to reduce the principal of your loan. We have seen this happen, but it is not the
norm, so do not get your hopes too high. Still, it never hurts to ask, and reducing the principal
on a loan could amount to an enormous savings over the life of the loan, plus a healthy
reduction in your monthly payments. Closing: These are just a few of the options available
to you when trying to reduce your monthly payments. At Alliance Legal Group, we help
clients avoid or fight foreclosures and help them with their loan modifications every day.
We would be happy to discuss the circumstances of your situation in a free, no obligation
consultation and help you determine the appropriate course of action for your loan. You can reach
us by email at [email protected] or by phone at 1-877-560-4440. I’m David Hicks;
have a great day!