Don't wait to get help with your mortgage!

Date:January 25, 2010 | Author: | Category:Loan Modification

If you’re having trouble making monthly mortgage payments, you may be eligible for a permanent loan modification under the federal Making Home Affordable Modification Program (HAMP). Rates are expected to rise, making loan modifications more difficult for lenders to do.

Here’s why economists anticipate a hike in mortgage rates. The Federal Reserve, our country’s central bank, has been buying $1.25 trillion worth of mortgage bonds. This raises bond prices and brings mortgage rates down. But the Fed has announced they’ll end this purchase program on March 31, 2010. Unless another big buyer comes along, mortgage bond prices could go down, sending mortgage rates back up.

By the way, the latest federal report on the HAMP program is encouraging. The number of people with trial and permanent loan modifications went up over 75% for October, November and December 2009, compared to the three prior months.

And if you’re wondering if it’s worth it, get this. The median monthly payment among borrowers with permanent loan modifications dropped from $1,419 to $830 a month! This reduced the median debt-to-income ratio from 45% to 31%.