This makes the 30-year fixed-rate home loan very different from an adjustable-rate mortgage (ARM). An adjustable loan, as its name suggests, has an interest rate that can change over time. But the 30-year fixed-rate mortgage remains true to its name, keeping the same interest rate (and the same monthly payment amount) through the entire repayment term.
Second Lien Modification Program (2MP): If your first mortgage was permanently modified under HAMP SM and you have a second mortgage on the same property, you may be eligible for a modification or principal reduction on your second mortgage under 2MP. Likewise, If you have a home equity loan, HELOC, or some other second lien that is making it difficult for you to keep up with your mortgage payments, learn more about this MHA program.
Keep Your Home California uses the Note date as the start date for the Keep Your Home California lien. The Note date is the date of final Keep Your Home California approval. This will always pre-date the servicer’s application of Keep Your Home California funds to your loan. If you wish to know your Note date, you may contact Keep Your Home California at (888) 953-3722, Monday-Friday from 8 a.m. to 5 p.m.
Free legal foreclosure counseling - Grants are provided to over 900 law offices and attorneys across the country as part of a federal government legal assistance program. While many services are offered by these pro-bono law firms and attorneys to income qualified clients, one of the services provided is free foreclosure assistance. Get free lawyer advice.
At the end of the day, your mortgage loan is the single biggest financial decision you’re likely to make in your life. It’s important to take time to get it right, and that ultimately comes down to finding a lender who can do three things: offer competitive rates, offer great service and quickly process your loan. By keeping these areas in mind, you’re not only going to win as you go to buy your house — you're going to also save money and time.
This website provides general information about Keep Your Home California, its programs and services, and summarizes major policies and guidelines pertaining to foreclosure prevention assistance. Website content does not always reflect the most recent changes to programs or services nor is it intended to be a comprehensive resource for determining program eligibility. Program descriptions are intended to provide a broad overview of current programs and may not include all of the elements considered in the eligibility process. Keep Your Home California reserves the right to change, delete, supplement or otherwise amend, at any time, the information, requirements, policies, procedures and program descriptions contained on this website.
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.
FHA loans. FHA loans are a program from the Department of Housing and Urban Development (HUD). They’re designed to help first-time homebuyers and people with low incomes or little savings afford a home. They typically offer lower down payments, lower closing costs and less-stringent financial requirements than conventional mortgages. The drawback of FHA loans is that they require an upfront mortgage insurance fee and monthly mortgage insurance payments for all buyers, regardless of your down payment. And, unlike conventional loans, the mortgage insurance cannot be canceled, even if you have more than 20 percent equity in your home.
Amortization. Each mortgage payment is split so that part goes to paying the principal and the rest goes to interest. In the early years of your mortgage, interest makes up a greater part of your overall payment, but as time goes on, the principal becomes a larger portion because you have a smaller amount of principal to charge interest against. Your lender will provide an amortization schedule (a table showing the breakdown of each payment).
Your credit score can make a big difference in how much home you can afford and how much interest you'll end up paying. For example, if you're obtaining a $200,000 mortgage and have a FICO score of 750, you can expect to pay $138,324 in interest over the term of a 30-year mortgage as of this writing. On the other hand, with a score of 650, you can expect to pay almost $35,000 more. MyFICO.com has an excellent calculator that can tell you the cost of your credit score. Before you start the homebuying process, it can be a good idea to check your credit report and FICO score and to do damage control if necessary.
Buying a home with a mortgage is probably the largest financial transaction you will enter into. Typically, a bank or mortgage lender will finance 80% of the price of the home, and you agree to pay it back – with interest – over a specific period. As you are comparing lenders, mortgage rates and options, it’s helpful to understand how interest accrues each month and is paid.
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.
Know your credit score. As soon as you decide to start looking for a home, check your credit report and credit score with any of the 3 major credit reporting agencies: Experian, TransUnion and Equifax. If you find any mistakes that need to be corrected, addressing these issues early will put you in a better position when it’s time to buy a house. (Bank of America credit card clients can get a free FICO® score in Online and Mobile Banking.)
Since there are so many different types of mortgage loans, it can be difficult to choose the best loan for your needs. If you want a set monthly payment and a definite period of time to pay off the loan, you should look primarily at home mortgage loans. This is a good option if you want to remodel, and you know exactly how much it is going to cost. A home equity loan gives you added flexibility since it is a revolving line of credit. This is a good option if you have several smaller projects you are working on and you are unsure of how much each will cost. It also gives you the opportunity to withdraw the money to cover other expenses like a wedding for your child or to help cover college expenses. Either option does put your home at risk if you default on your payments, even if you are current on your first mortgage. It is important to carefully consider your budget to make sure that you can afford the payments. Once you do this you can be confident in moving forward on either type of loan.