How much you can afford. Lenders will be happy to tell you how much they’re willing to lend you, but that’s not actually a good indication of how much house you can afford. Check out our affordability calculator to get an idea of where you stand before you start looking for houses. Remember that your monthly payment will be more than just principal and interest. It will also include homeowner’s insurance, property taxes and, potentially, mortgage insurance (depending on your loan program and down payment). You’ll also need to factor in utilities and maintenance.
FHA Special Forbearance: If you are having difficulty making mortgage payments because you are unemployed and have no other sources of income, you may be eligible for FHA's Special Forbearance. FHA now requires servicers to extend the forbearance period, by offering a reduced or suspended mortgage payment for up to twelve months, for FHA borrowers who qualify for the program.
The major downside of taking out a mortgage is that it does put your home at risk if you fail to make payments. You may want to look into other options if you want to consolidate your debt. Some people choose to refinance their original mortgage to cash out their equity and to avoid two mortgage payments. When they refinance, they cash out the equity or take out more than they still owe on the loan. Like a traditional mortgage, refinancing has set monthly payments and a term that shows when you will have the loan paid off.
Wells Fargo Loan Modification Program - They offer two main plans for homeowners. They include ProjectLifeline, which delays the foreclosure process, and also the Fast-Trac solution for adjustable rate mortgages. These two programs from Wells Fargo have helped thousands of homeowners. Benefits have included more time to pay your loan, and more affordable interest rates. More details on the Wells Fargo Lifeline.
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Many homeowners pay their mortgages on time, but are not able to refinance to take advantage of today’s lower mortgage rates, mainly due to a significant decrease in the value of their home. A Home Affordable Refinance will help borrowers refinance their first mortgage even if the balance owed is more than 100% of the home value. For example, let’s say the amount you owe on your first mortgage is $500,000. You may be able to refinance even if the home value is now only $400,000.
Find information on the Home Affordable Foreclosure Alternatives (HAFA) program, which is the new federal government short sale program. This is a plan created by the Obama administration that provides financial incentives to both homeowners and lenders. It both encourages the parties to use short sale process by providing financial aid to banks and homeowners, and it also simplifies the process. Find more on the short sale program from HAFA.
Taxes. You can usually choose to pay property taxes as part of your mortgage payment or separately on your own. If you pay property taxes as part of your mortgage payment, the money is placed into an escrow account and remains there until the tax bill for the property comes due. The lender will pay the property tax at that time out of the escrow fund.
Many real estate agents want you to be pre-qualified for a loan before they will start to work with you. The mortgage pre-qualification process is fairly simple, usually just requiring some financial information such as your income and the amount of savings and investments you have. Once you are pre-qualified, you will have a better sense of how much you can borrow and the price range of the homes you can afford.
Yes, if a homeowner becomes fully re-employed while they are receiving Unemployment Mortgage Assistance benefits they are required to contact Keep Your Home California in writing. Homeowners should send notice of re-employment to Keep Your Home California Funding Department at Funding@KYHCA.org. Please be sure to include the first date of employment, employer name and monthly gross income amount along with your Homeowner ID number, property address and name. Benefit assistance will end no later than 90 days from the date the homeowner notifies* Keep Your Home California that they have become fully re-employed and are no longer receiving EDD benefits.
Amortization is what you are actually paying per year against your loan. You can get a mortgage with a term of 10, 15 or 30 years. You pay each month and the principal decreases until it’s paid off. The payments don’t change but at the beginning of the term, most of the payment is going toward interest. By the end of the term, that’s flipped and you’ll be paying down the mortgage principal.
The last thing any homeowner wants is to face the stress of being behind on their mortgage payment, or worse yet, to think about, and possibly lose the family home to foreclosure or unpaid property taxes. No one ever plans to or expects to lose their home to foreclosure. But by understanding how you can obtain assistance with making your mortgage payments, who and how to ask for help, and what to do, you can reduce your chances of this occurring. Communication and being pro-active is one of they keys. You should also know the foreclosure process inside and out, and understand what may lead up to it. That will place you in a better position to address and also recognize any potential problems that may impact your ability to pay every bill and make every mortgage payment on time.
Property tax help is available which will in effect free up a homeowner’s income. Since home values have declined in most parts of the nation, you are more than likely paying too much in real estate and property taxes. Learn how to lower your property taxes by contesting your property assessment. There is no cost to do this, and anyone can challenge the assessed value on their home.