When you are going through the process of modifying your mortgage, there are a lot of different possibilities for forgiving or delaying certain aspects of your home loan. You will have the ability to agree to a, typically, reduced interest rate on your mortgage and in some instances, an opportunity for a reduction of your principal balance on your home loan. A properly completed mortgage modification can significantly help you restore your financial stability. With this in mind here are a few things you should know about a mortgage modification.
- The interest rate you are promised is on the day the loan is approved. If your lender continues to change the interest rate that they are going to give you they must stick with what was given to you on the day your mortgage modification was approved.
- Your loan is recalculated using 360 payment amortization from closing of the mortgage modification. This means that your principal balance will not go back to the day you bought the home and start the 360 payments on a 30 year mortgage again. With your mortgage modification the principal balance that is agreed upon will start being paid off with the beginning of another 360 payment schedule. This will have an amazing impact on your monthly payment and should the lender agree to a principle reduction of your original balance, you could save tens of thousands of dollars.
With a loan modification you have the opportunity of reducing both your interest rate and your principal balance!
Don’t waste any more time! If you want an opportunity for an interest rate reduction or to reduce your mortgage principle, contact us today by phone at 813-612-5697 or 877-246-4486 or by email at sales@tsherwoodlaw.com.
