Whether it is purchasing your first home, buying a vacation home or downsizing to something more appropriate to fit your life style, a new beginning can be a wonderful experience. It can also be a bit overwhelming. There are open houses to attend, homes to compare and a sea of information to sort through.  During these times, having a team around you is extremely important. One of the most important members of that team is your loan officer (and mortgage company)


The lease/buy back: Homeowners are deceived into signing over the deed to their home to a scam artist who tells them they will be able to remain in the house as a renter and eventually buy it back. Usually, the terms of this scheme are so demanding that the buy-back becomes impossible, the homeowner gets evicted, and the “rescuer” walks off with most or all of the equity.
Representative example A mortgage of £189,518 payable over 22 years, initially on a fixed rate until 31/05/24 at 2.02% and then on a variable rate of 4.99% for the remaining 17 years would require 64 payments of £889.75 and 200 payments of £1,113.35. The total amount payable would be £281,059 made up of the loan amount plus interest (£90,118) and fees (£1,423). The overall cost for comparison is 3.8% APRC representative.
Typically offered by lenders, loan modification programs are designed to make your mortgage fit within your budget. If your income has decreased due to layoff, reduction in hours, reduction in hourly pay, or emergency expenses, you can go to your lender and explain why you can't pay the mortgage. If they offer loan modification programs, they can reduce their interest rates, keep your payment within a certain percentage of your income, increase or decrease the length of the loan, or negate certain penalty fees. Loan modifications are rarely sweeping, one-size-fits-all type deals. They take time to set up, and only provide indirect assistance by modifying your debt. They don't put cash directly into your pocket. For this reason, they're not useful as emergency mortgage assistance, but they can help if you're struggling just a little bit.

Example – A $200,000 fixed-rate mortgage for 30 years (360 monthly payments) at an annual interest rate of 4.5% will have a monthly payment of approximately $1,013. (Taxes, insurance and escrow are additional and not included in this figure.) The annual interest rate is broken down into a monthly rate as follows: An annual rate of, say, 4.5% divided by 12 equals a monthly interest rate of 0.375%. Every month you’ll pay 0.375% interest on the amount you actually owe on the house.

If you plan on staying put until the mortgage is paid off, a fixed-rate loan will give you stability. The interest rate is a little higher than an adjustable-rate mortgage (ARM). But it won’t go up like an ARM can. The only things that will change your house payment over time are property taxes and insurance rates, but those will change regardless of which type of loan you get.
“Get pre-approved early, and know your numbers. Make sure you understand the monthly payment that goes along with your price point. Your expectations and your reality need to sync up. Also, rely on your professionals like loan officers and real estate agents. Never feel like you’re bugging them with questions, they should want you to bug them with questions. They’d certainly rather you get the correct info from them than the incorrect info from Google. Also, I think it’s ok to overpay a little for a house you love. If the market isn’t giving you many options to buy and you find a house you love, don’t get hung up on a couple thousand bucks, especially if you’re going to stay in the house long-term. If you can afford it, make it happen.”–Tyler Baker, Branch Manager, Olathe, KS

Also, JP Morgan Chase has opened dozens of Homeownership Centers across the country to provide face to face contact for troubled borrowers. Anyone can stop by a center in their region for free consultations and information. The face to face contact from a homeownership center will ensure the borrower receives the attention and service they deserve.


It’s not uncommon for lenders to pull your credit report a second time to see if anything has changed before your loan closes. Be careful not to do anything that would bring down your credit score while your loan is being processed. So, pay all of your bills on time, don’t apply for any new credit cards, and don’t take out any new car loans until your home loan has closed.
Modify your mortgage loan. In many cases your payment is no longer affordable due to changing personal or financial circumstances. A loan modification can reduce your payments, waive fees, lower your interest rates, and more. Banks and lenders are also offering loan modifications with interest rates as low as 2%. They have determined this is in their best financial interest as well. Learn more on low interest rate loan modifications. Find all of the pros and cons as well as details on modifying mortgages.
Regions Bank has helped thousands of homeowners avoid foreclosure through a program called the Customer Assistance Program. This can provide a number of solutions to qualified applicants. Sign up for forbearance, repayment plans, and home loan modifications are all offered. There are several Regions Bank foreclosure assistance programs for struggling low income customers.
The foreclosure prevention specialist: The “specialist” really is a phony counselor who charges high fees in exchange for making a few phone calls or completing some paperwork that a homeowner could easily do for himself. None of the actions results in saving the home. This scam gives homeowners a false sense of hope, delays them from seeking qualified help, and exposes their personal financial information to a fraudster. 
National policy favors homebuyers via the tax code (although less than it previously did). For many families the right home purchase is the best way to build an asset for their retirement nest egg. Also, if you can refrain from cash-out refinancing, the home you buy at age 30 with a 30-year fixed rate mortgage will be fully paid off by the time you reach normal retirement age, giving you a low-cost place to live when your earnings taper off.

Depending on your financial position, there are many different types of mortgage assistance program available to you. There are two classes of program: government-sponsored and lender-sponsored. Government-sponsored home mortgage assistance tends to be broader in scope and easier to acquire, but less tailored to your individual needs. Remember that the point of government assistance is to free up cash for you to spend elsewhere. Lender-sponsored assistance, meanwhile, is designed to float you through rough patches so you can eventually pay them back. These loans, grants, modifications and agreements are tailored to make sure that the lending company doesn't lose money on you.

National policy favors homebuyers via the tax code (although less than it previously did). For many families the right home purchase is the best way to build an asset for their retirement nest egg. Also, if you can refrain from cash-out refinancing, the home you buy at age 30 with a 30-year fixed rate mortgage will be fully paid off by the time you reach normal retirement age, giving you a low-cost place to live when your earnings taper off.
I doubt it, people seem to live in countries and mostly not care how it is run. As a bonus, most don’t understand the clockwork behind. I have a mortgage and am doing very well since I got a college degree and am progressing more in my career. I like the article on how straight – forward it is on it’s description of what a mortgage really is. I hope people will read it, that way if they are not so lucky with money they will choose an apartment over the painful situation a mortgage can bring on low-income people.
PLEASE READ: It is important to note that Keep Your Home California has no role in the loan modification process and no influence on a Servicer’s decision to approve or decline such a request. The process of obtaining a loan modification during the period of Unemployment Mortgage Assistance Program benefits is completely between the homeowner and their Servicer. The Servicer may have policies that affect the homeowner’s ability to receive a loan modification while receiving Keep Your Home California unemployment benefit assistance.
With this in mind, it’s important to do research before choosing a mortgage lender. You not only want to compare the rates but also the level of service each lender provides. When comparing rates, be sure to get the estimates on the same day as rates can change daily. When reviewing level of service, ask how quickly they can process your loan. Is the lender available to personally help you choose the right product and rate, or are you waiting on hold for “the next available representative”?  Do they make you jump through hoops just to get a rate quote?
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The United Way's 2-1-1 hotline connects people with local assistance programs. By dialing 2-1-1, you can receive referrals to organizations that help with food, housing, employment, health care, prescriptions and more. If you are a struggling homeowner, the United Way can help you find a foreclosure prevention counselor and refer you to available mortgage assistance programs. Trained specialists take calls day or night. The United Way may also provide emergency financial assistance to households in danger of losing their homes. Programs vary among locations.

Catholic Charities assist people in need regardless of religion, race and background. The agencies offer emergency financial assistance for people who suffer a crisis, such as a job loss, unexpected medical expenses, car repairs or a death in the family. Although an unpaid mortgage qualifies under the Emergency Assistance Program, some locations have specific programs designed to provide mortgage help. The Housing Counseling Program helps homeowners find a permanent solution to avoid foreclosure.

Manage your debt carefully after your home purchase. Sometimes your home will need new appliances, landscaping or maybe even a new roof. Planning for these expenses carefully can help you avoid one of the most common causes of missed mortgage payments: carrying too much debt. It's important not to overextend your credit card and other debts so you stay current on your payments.
Look at properties that cost less than the amount you were approved for. Although you can technically afford your preapproval amount, it’s the ceiling — and it doesn’t account for other monthly expenses or problems like a broken dishwasher that arise during homeownership, especially right after you buy. Shopping with a firm budget in mind will also help when it comes time to make an offer.
Union Plus Mortgage Assistance provides interest-free loans and grants to help make mortgage payments when you're disabled, unemployed, furloughed, locked out or on strike.  If you qualify for the Mortgage Assistance loan benefit, you’ll also receive a one-time grant of $1,000 paid directly to you (Note: if you are applying due to a furlough the one-time grant is $300). The program has provided over $11.2 million in assistance to union members.
Homeowners that are disabled can receive mortgage assistance from the FHFA Home Affordable Refinance Program, HUD housing vouchers, and other resources. Many of these services will be administered as income based programs. The client will normally need to use much of their monthly SSI or SSDI disability payment for paying their mortgage, but if they meet some of the other conditions in place, then additional support can be provided. Find other mortgage assistance for the disabled.
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