Affordable Mortgage Loan Modification [mortgage-assumption.blogspot.com]
For Canadians who want to take advantage of current low interest rates, Farhaneh Haque, Director Mortgage Advice, TD Canada Trust offers tips on understanding your affordability today and in the future.
mortgage-assumption.blogspot.com Low mortgage interest rates: Mortgage affordability tips for home buyers and owners
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Are you searching for the right way to make ends meet again and keep current on your mortgage? If you think you've run out of options, consider mortgage loan modification. Modification packages are individually crafted between the borrower and the lender to set up new interest rates and terms that are realistic for you.
Mortgage loan modification is a simple, straightforward, long-term solution to troubled homeowners who are facing the horrible prospect of foreclosure. By contacting your bank and requesting a loan modification, they may decide to grant you one if they are convinced that you would keep current on a modified loan. If you're faced with the idea of home foreclosure, ask your lender about loan modification options. Talking to your lenders can actually brighten your financial situation, because you can get a lower interest rate and new loan terms.
Modification has allowed many homeowners like you to repay their mortgages.
It effectively ends a foreclosure even if it has already started, and keeps you in your home. Lots of loan modification professionals will help you to negotiate with your lender and work out details with overdue accounts. They may be able to roll the overdue payments in with the loan principal. The new amount is re-amortized over a time. Loan modification professionals also see if you can get your loan life extended and decrease the interest rate to make a more affordable monthly payment.Obtaining a mortgage loan modification is beneficial to homeowners in numerous ways. It gives them a clean slate and lets them start over with respect to their mortgage payments and their home ownership. Negotiating a modified loan usually takes between a few days to as many as 60-90 days.
It depends on the lender and your application details.On your application, submit accurate and complete financial information to speed along the process and increase your chances of approval. The documents you submit will tell lenders about your financial history and current credit status. The first thing you need to do is tell your lender about your financial hardships.
It may help to visualize loan mortgage modification as a refinance, the objective of which being to get a more affordable monthly payment. Eligibility depends on various criteria including:
• Not previous bankruptcies
• Primary owner and occupant of the home
Using loan modification can easily help you in times of financial distress.
More Affordable Mortgage Loan Modification ArticlesQuestion by Ronaldo: How does rental income on a 1st mortgage affect mortgage affordability on a second home? For example if my 1st mortgage is $ 1000 per month and i charge a rental income of $ 1000 per month, is it a wash? Or do i get the $ 1000 rental income added to my gross monthly income and have the $ 1000 mortgage payment added to my monthly liabilities? Best answer for How does rental income on a 1st mortgage affect mortgage affordability on a second home?:
Answer by infinite crisis 247
you would do the latter on the mortgage application. the 1000 dollar rent you are collecting would be income (and therefore taxable), and the 1000 mortgage payment is a debt (liability).
Answer by Biggie @ Arbor Mortgage
You are actually not charging enough. You are only allowed to take 75% of your rental income, so it is not a wash.
Answer by Tom B
When you apply for a mortgage on a second property and intend to use the first home as an investment you are able to duse that as income. Most banks will give you 75% of what your rent is as usable income. That 75% will be added to your income and you can offset that against your debt If you have any other questions just email me
Answer by 9 daughters
I've been through this several times. A lot depends on the specific lender but here are the basics. 1. All lenders factor in something for vacancies and repairs when calculating your rent income. My lenders count 80% of the rent as income, some lenders only 75%. At 80% a lender would say you've got $ 800 income per month, a $ 1,000 payment, so you'd have a net loss of $ 200 per month. 2. Some lenders require a history of rent for a property before they'll count it as income. Some require a year, some 2 years. The reason for this is to substantiate your claim of $ 1,000 a month rental income. In other words, what's to stop you from saying it's $ 1,000 a month when it's really $ 600?
