Home Mortgage Refinancing and Good Credit


Did you know that your mortgage loan can be modified with new terms and the results are new payments you can afford?  This is called a “mortgage mod”, typically called a “loan re-workings”, and can be a permanent change in one or more of the terms in your mortgage agreement.

This is not a refinance and doesn’t require a certain fair Isaac score, as it is not even taken into consideration. 

Your mortgage company may perform an inspection of your property to verify that the property has no physical conditions that would have an adverse impact on their decision for the modified mortgage payment.

Most lenders will also waive all accrued late charges, although it has been reported that some lenders do add them to the principal balance.

All loan workouts require an escrow account no matter what the situation, whether it is FHA or Conventional loan.

Mortgage modifications have a new FHA interest rate which is 200 points above the monthly average yield on the United States Treasury Securities, and is adjusted to a constant maturity of ten years.

Mortgage companies are required to perform an escrow analysis on loan workouts to ensure that delinquent payments being capitalized reflect the actual escrow requirements required for those months capitalized.

Many seem to want to know if a spouse is unemployed and the home owner is working but is not listed on the mortgage if the lender has the power to qualify an asset for loan modification.  This is a very good question and comes up all the time.  In cases as such, a complete financial review should be conducted to determine if they meet all qualifying conditions to satisfactorily meet repayment terms based upon any surpluses.  In this case banks usually don’t have any problems with this modification as an option.

Home Mortgage Refinancing and Good Credit

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