Mortgage principal reductions are becoming more common. The latest data shows that banks and lenders are forgiven, deferring or reducing the principal balance on about 15% of home mortgages, and they are writing off billions of dollars in principal. Studies show that reducing the balance on a mortgage may be the most effective solution to a housing crisis. Locate a list of mortgage loan principal reduction programs from banks.
With a fixed-rate mortgage, the interest rate will not change over the life of the loan. It's a good choice for someone who likes the certainty of knowing the mortgage payment will never go up. ARMs start with a lower interest rate for the first few years and adjust after a predetermined period (usually five years) based on the housing market. This type of loan can seem risky as interest rates have the potential to rise significantly, but there are caps in place to keep the rates from rising to astronomical levels.
Find out more about additional programs and options now being offered by JP Morgan Chase. The lender is continually creating new resources for those who need help. These programs are providing homeowners several additional options for mortgage delinquency counseling as well as foreclosure assistance. The bank is doing its best to help customers of all ages, backgrounds, and income levels, and they want to prevent as many foreclosure as possible. Find additional foreclosure and mortgage assistance from JP Morgan for housing issues.
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.

Short sale can be an alternative to a foreclosure, and it will allow you to sell your home for less than the current outstanding mortgage balance on it. While this can be a drawn out process and take time, this option is becoming more common and acceptable by banks, real estate agents and servicers. Learn more on how short sales can stop foreclosures.
Following the financial crash of 2008 and the subsequent collapse of the housing bubble, many (but not all) real estate markets eventually recovered. Entered into in a prudent way, home ownership remains something you should consider in your long-term financial planning. Understanding how mortgages and their interest rates work is the best way to ensure that you're building that asset in the most financially beneficial way. 
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.
Note: If you pay half your house payment every two weeks instead of one monthly payment, you’ll end up saving money on your loan. You’ll wind up paying 26 payments per year, one more payment annually than if you just paid monthly. The re-amortized loan will eventually result in more of the payment paid on principal and less on interest. The extra payments go to pay down the principal on the loan.
Mortgage Payment Assistance (MPA) offers up to 24 months of assistance for eligible applicants who have had an unemployment or underemployment hardship in the last 36 months and need help paying mortgage monthly. Of the 24 months, up to 12 months may be used to reinstate first and some second mortgages. Mortgage payment assistance ends when the homeowner is able to sustain the mortgage payment, when reserved funds are exhausted, or when 24 monthly payments have been provided, whichever comes first. Under MPA, you may be required to make partial payments toward your mortgage during your participation in the program. If you are now employed and are able to make your currently monthly payments but are behind on your mortgage, MPA offers a onetime payment to your lender for up to 12 months of mortgage help to bring your mortgage current.
After you have applied for a home loan, it is important to respond promptly to any requests for additional information from your lender and to return your paperwork as quickly as possible. Waiting too long to respond could cause a delay in closing your loan, which could create a problem with the home you want to buy. Don’t put yourself in a position where you could end up losing your dream home, as well as any deposit you may have put down.
Deed in Lieu of Foreclosure: You voluntarily transfer your property title to the servicers (with the servicer’s agreement) in exchange for cancellation of the remainder of your debt. Though you lose the home, a deed in lieu of foreclosure can be less damaging to your credit than a foreclosure. You will lose any equity in the property, although under the Mortgage Forgiveness Debt Relief Act of 2007, the forgiven debt on your primary residence may be excluded from income when calculating the federal taxes you owe. However, it still must be reported on your federal tax return. For more information, contact the IRS. A deed in lieu of foreclosure may not be an option for you if other loans or obligations are secured by your home.

There are a number of programs to assist homeowners who are at risk of foreclosure and otherwise struggling with their monthly mortgage payments. The majority of these programs are administered through the U.S. Treasury Department and HUD. This page provides a summary of these various programs. Please continue reading in order to determine which program can best assist you.
Eric Bank is a senior business and real estate writer, freelancing since 2002. He has written thousands of articles about business, insurance, real estate, investing and taxes, Eric writes articles, blogs and SEO-friendly website content for dozens of clients worldwide, including get.com and valuepenguin.com. Eric holds two Master's Degrees -- in Business Administration and in Finance. His website is ericbank.com.
This is the number of years during which you will be making payments on your mortgage. The most popular mortgage is a 30-year fixed, with 15-year fixed coming next. Common terms for fixed mortgages are 15 and 30 years, but some banks offer mortgages in other five-year increments from 10 to 40 years. Stretching out payments over 30 years or more will mean that your monthly outlay will be lower, but the overall cost of your home will be more because you’ll be paying interest for more years. To make your home cost less, choose a shorter term, such as 15 years.

Start by asking someone you know who has recently gotten a mortgage to see if they would recommend their lender. Ask a financial adviser, business colleague or real estate agent you know to help you write a short list of referrals. An agent should be able to provide you at least two options. Anything less, and you might question whether there’s a financial interest in the relationship between the agent and the mortgage company they suggest. Often national lenders referred by agents end up offering higher interest rates when compared to local mortgage companies.
Home equity loans are also referred to as second mortgages because you use your equity as collateral. If you obtain a home equity term loan, you will receive a lump sum and will have to make a monthly payment. You can also apply for a home equity line of credit, which provides you with access to a revolving account. That allows you to withdraw and repay money over the course of a specific period of time.
A third option – usually reserved for affluent home buyers or those with irregular incomes – is an interest-only mortgage. As the name implies, this type of loan gives you the option to pay only interest for the first few years, and it’s attractive to first-time homeowners because of the low payments during their lower earning years. It may also be the right choice if you expect to own the home for a relatively short time and intend to sell before the bigger monthly payments begin.
Apartment renting is great when you are a twenty-something college student and all of the best trendy restaurants are within walking distance of your home. It doesn’t take long, however, until those things slowly fade away and the desire to own a home becomes more than a thought. This is usually the point where you realize you need to evaluate your finances if you are going to apply for a home loan. Fast forward to the point where you have made the decision to buy a home and you are getting an approval. The bank comes back to you saying that you did not get approved for the loan. It can be devastating but if you know the reasons why you can’t qualify for a loan, the easier it will be to work on fixing them so that your dream of owning a home can become a reality.
Why would anyone get a loan with a prepayment penalty? Some lenders offer very low (and therefore tempting) interest rates in exchange. Also, some borrowers agree to loans with penalties if they have bad credit and it’s the only way they can get the loan. Mostly, a prepayment penalty is a financial decision. There are situations where accepting a prepayment penalty on a loan can save you thousands of dollars in interest.
Interest – This is what you are paying to borrow the money for your home. It is calculated based on the interest rate, how much principal is outstanding and the time period during which you are paying it back. At the beginning of the loan repayment period, most of your payment actually is going toward interest, with a small portion going against paying down the principal. Over time this will reverse and more of your payment will go toward reducing the loan balance.
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.
Hybrid Adjustable Rate Mortgages (ARMs): Mortgages that have fixed payments for a few years, and then turn into adjustable loans. Some are called 2/28 or 3/27 hybrid ARMs: the first number refers to the years the loan has a fixed rate and the second number refers to the years the loan has an adjustable rate. Others are 5/1 or 3/1 hybrid ARMs: the first number refers to the years the loan has a fixed rate, and the second number refers to how often the rate changes. In a 3/1 hybrid ARM, for example, the interest rate is fixed for three years, then adjusts every year thereafter.
LendingTree, LLC is a Marketing Lead Generator and is a Duly Licensed Mortgage Broker, as required by law, with its main office located at 11115 Rushmore Dr., Charlotte, NC 28277, Telephone Number 866-501-2397 (TDD/TTY). NMLS Unique Identifier #1136. LendingTree, LLC is known as LT Technologies in lieu of true name LendingTree, LLC in NY. LendingTree technology and processes are patented under U.S. Patent Nos. 6,385,594 and 6,611,816 and licensed under U.S. Patent Nos. 5,995,947 and 5,758,328. © 2016 LendingTree, LLC. All Rights Reserved. This site is directed at, and made available to, persons in the continental U.S., Alaska and Hawaii only.
Apartment renting is great when you are a twenty-something college student and all of the best trendy restaurants are within walking distance of your home. It doesn’t take long, however, until those things slowly fade away and the desire to own a home becomes more than a thought. This is usually the point where you realize you need to evaluate your finances if you are going to apply for a home loan. Fast forward to the point where you have made the decision to buy a home and you are getting an approval. The bank comes back to you saying that you did not get approved for the loan. It can be devastating but if you know the reasons why you can’t qualify for a loan, the easier it will be to work on fixing them so that your dream of owning a home can become a reality.
Because the interest rate is not locked in, the monthly payment for this type of loan will change over the life of the loan. Most ARMs have a limit or cap on how much the interest rate may fluctuate, as well as how often it can be changed. When the rate goes up or down, the lender recalculates your monthly payment so that you’ll make equal payments until the next rate adjustment occurs.
For the majority of homebuyers, a fixed-rate loan is the best choice, especially in a low-interest environment like we're in now. However, if you don't plan on being in the home you buy for more than a few years, an adjustable-rate mortgage could save you thousands of dollars in interest. For example, if you're buying a home to live in during four years of graduate school, an adjustable-rate mortgage with a five-year initial rate period could be a smart idea.

After you have applied for a home loan, it is important to respond promptly to any requests for additional information from your lender and to return your paperwork as quickly as possible. Waiting too long to respond could cause a delay in closing your loan, which could create a problem with the home you want to buy. Don’t put yourself in a position where you could end up losing your dream home, as well as any deposit you may have put down.


“Now is the time to start the process. More than 75 percent of credit reports are said to have some incorrect data. Often a difference of two points in your credit score can make a drastic difference in your interest rate and/or loan fees. Making sure you are prepared from a credit standpoint is the most important part of the process. Secondly, make sure you are staying current on all your liabilities. And lastly, when you sit down with us, you will know you are with an industry leader in Movement Mortgage. We love and value people here at Movement.  It shows in how we take care of you while guiding you through the process.”–Bodie Shepherd, Market Leader, Chico, CA
Homeowner’s Insurance. Homeowner’s insurance is insurance that covers damage to your home from fire, accidents and other issues. Some lenders require this insurance be included in your monthly mortgage payment. Others will let you pay it separately. All will require you have homeowner’s insurance while you’re paying your mortgage—that’s because the lender actually owns your home and stands to lose a lot of it you don’t have insurance and have an issue.
I find it interesting that many people now a days fail to pay their mortgage. I wish we could balance out this world by pulling very strict regulations on corporations, have a representative democracy, and free schooling [even on college]. That way, any country maintaining life like this would reduce poverty by a huge margin and the wealth distribution would be fair. Life would be very peaceful in a place like this.

What I want to do with this video is explain what a mortgage is but I think most of us have a least a general sense of it. But even better than that actually go into the numbers and understand a little bit of what you are actually doing when you’re paying a mortgage, what it’s made up of and how much of it is interest versus how much of it is actually paying down the loan. So, let’s just start with a little example. Let’s say that there is a house that I like, let’s say that that is the house that I would like to purchase. It has a price tag of, let’s say that I need to pay $500,000 to buy that house, this is the seller of the house right here. And they have a mustache, that’s the seller of the house. I would like to buy it. I would like to buy the house. This is me right here. And I’ve been able to save up $125,000. I’ve been able to save up $125,000 but I would really like to live in that house so I go to a bank, I go to a bank, get a new color for the bank, so that is the bank right there. And I say, Mr. Bank, can you lend me the rest of the amount I need for that house, which is essentially $375,000. I’m putting 25 percent down, this right, this right, this number right here, that is 25 percent of $500,000. So, I ask the bank, can I have a loan for the balance? Can I have a $375,000 loan? And the bank says, sure, you seem like, uh, uh, a nice guy with a good job who has a good credit rating. I will give you the loan but while you’re paying off the loan you can’t have the title of that house. We have to have that title of the house and once you pay off the loan we’re going to give you the title of the house. So what’s going to happen here is we’re going to have the loan is going to go to me, so it’s $375,000, $375,000 loan. Then I can go and buy the house, so I’m going to give the total of $500,000, $500,000 to the seller of the house and I’ll actually move into the house myself, assuming I’m using it for my own residence. But the title of the house, the document that says who actually owns the house, so this is the home title, this is the title of the house, home, home title. It will not go to me. It will go to the bank, the home title will go from the seller, maybe even the seller’s bank, maybe they haven’t paid off their mortgage, it will go to the bank that I’m borrowing from. And this transferring of the title to secure a loan, I say secure a loan, I’m saying, look, I need to give something to the lender in case I don’t pay back the loan or if I just disappear. So, this is the security right here. That is technically what a mortgage is. This pledging of the title for, as the, as the security for the loan, that’s what a mortgage is. And actually it comes from old French, mort, means dead, dead, and the gage, means pledge, I’m, I’m a hundred percent sure I’m mispronouncing it, but it comes from dead pledge. Because, I’m pledging it now but that pledge will eventually die once I pay off the loan. Once I pay off the loan this pledge of the title to the bank will die, it’ll come back to me. And that’s why it’s called a dead pledge or a mortgage. And probably because it comes from old French is the reason why we don’t say mort gage. We say, mortgage. But anyway, this is a little bit technical but normally when people refer to a mortgage they’re really referring to the loan itself. They’re really referring to the mortgage, mortgage, the mortgage loan. And what I want to do in the rest of this video is use a little screenshot from a spreadsheet I made to actually show you the math or actually show you what your mortgage payment is going to. And you can download, you can download this spreadsheet at Khan Academy, khanacademy.org/downloads, downloads, slash mortgage calculator, mortgage, or actually, even better, just go to the download, just go to the downloads, downloads, uh, folder on your web browser, you’ll see a bunch of files and it’ll be the file called mortgage calculator, mortgage calculator, calculator dot XLSX. So, it’s a Microsoft 2007 format. But just go to this URL and then you’ll see all of the files there and then you can just download this file if you want to play with it. But what it does here is in this kind of dark brown color, these are the assumptions that you could input and that you can change these cells in your spreadsheet without breaking the whole spreadsheet. So, here I would assume the 5.5 percent interest rate. I’m buying a $500,000 home. It’s a 25 percent down payment, so that’s the $125,000 that I had saved up, that I’d talked about right over there. And then the, uh, loan amount, well, I have the $125,000, I’m going to have to borrow $375,000. It calculates it for us and then I’m going to get a pretty plain vanilla loan. This is going to be a 30-year, so when I say term in years, this is how long the loan is for. So, 30 years, it’s going to be a 30-year fixed rate mortgage, fixed rate, fixed rate, which means the interest rate won’t change. We’ll talk about that in a little bit. This 5.5 percent that I am paying on my, on the money that I borrowed will not change over the course of the 30 years. We will see that the amount I borrowed changes as I pay down some of the loan. Now, this little tax rate that I have here, this is to actually figure out, what is the tax savings of the interest deduction on my loan? And we’ll talk about that in a second, we can ignore it for now. And then these other things that aren’t in brown, you shouldn’t mess with these if you actually do open up this spreadsheet yourself. These are automatically calculated and this right here is a monthly interest rate. So, it’s literally the annual interest rate, 5.5 percent, divided by 12 and most mortgage loans are compounded on an monthly basis. So, at the end of every month they see how much money you owe and then they will charge you this much interest on that for the month. Now, given all of these assumptions, there’s a little bit of behind the scenes math and in a future video I might actually show you how to calculate what the actual mortgage payment is. It’s actually a pretty interesting problem. But for a $500,000 loan, well, a $500,000 house, a $375,000 loan over 30 years at a 5.5 percent interest rate. My mortgage payment is going to be roughly $2,100. Now, right when I bought the house I want to introduce a little bit of vocabulary and we’ve talked about this in some of the other videos. There’s an asset in question right here, it’s called a house. And we’re assuming that it’s worth $500,000. We are assuming that it’s worth $500,000. That is an asset. It’s an asset because it gives you future benefit, the future benefit of being able to live in it. Now, there’s a liability against that asset, that’s the mortgage loan, that’s the $375,000 liability, $375,000 loan or debt. So, if you are, if this was your balance sheet. If this was all of your assets and this is all of your debt and if you were essentially to sell the assets and pay off the debt. If you sell the house you’d get the title, you can get the money and then you pay it back to the bank. Then, well actually, it doesn’t necessarily go into that order but I won’t get too technical. But if you were to unwind this transaction immediately after doing it then you would have, you would have a $500,000 house, you’d pay off your $375,000 in debt and you would get in your pocket $125,000, which is exactly what your original down payment was but this is your equity. And the reason why I’m pointing it out now is I’m, in this video I’m not going to assume anything about the house price, whether it goes up or down, we’re assuming it’s constant. But you could not assume it’s constant and play with the spreadsheet a little bit. But I, what I would, I’m introducing this because as we pay down the debt this number is going to get smaller. So, this number is getting smaller, let’s say at some point this is only $300,000, then my equity is going to get bigger. So, you can kind of view equity as how much value do you have after you pay off the debt for your house? If you were to sell the house, pay off the debt, what do you have left over for yourself? So, this is really kind of your, this is the real wealth in the house, the owner is, this is what you own, wealth in house or the actual what the owner has. Now, what I’ve done here is, well, actually before I get to the chart, let me actually show you how I calculate the chart and I do this over the course of 30 years and it goes by month. So, so you can imagine that there’s actually 360 rows here on the actual spreadsheet and you’ll see that if you go and open it up. But I just want to show you what I did. So, on month zero, which I don’t show here, you borrowed $375,000. Now, over the course of that month they’re going to charge you 0.46 percent interest, remember that was 5.5 percent divided by 12. 0.46 percent interest on $375,000 is $1,718.75. So, I haven’t made any mortgage payments yet. So, I’ve borrowed $375,000, this much interest essentially got billed up on top of that, it got accrued. So, now before I pay any of my payments, instead of owing $375,000 at the end of the first month I owe $376,718. Now, I’m a good guy, I’m not going to default on my mortgage so I make that first mortgage payment that we calculated, that we calculated right over here. So, after I make that payment then I’m essentially, what’s my loan balance after making that payment? Well, this was before making the payment so you subtract the payment from it, this is my loan balance after the payment. Now, this right here, what I, little asterisk here, this is my equity now. So, remember, I started with $125,000 of equity. After paying one loan balance, after, after my first payment I now have $125,410 in equity. So, my equity has gone up by exactly $410. Now, you’re probably saying, hey, gee, I made a $2,000 payment, a roughly a $2,000 payment and my equity only went up by $410,000. Shouldn’t this debt have gone down by $2,000 and my equity have gone up by $2,000? And the answer is no, because you had to pay off all of this interest, all of this interest. So, that very, in the beginning, your payment, your $2,000 payment is mostly interest. Only $410 of it is principal. But as you, and then you, and then, so as your loan balance goes down you’re going to pay less interest here and so each of your payments are going to be more weighted towards principal and less weighted towards interest. And then to figure out the next line, this interest accrued right here, I took my, your old, your loan balance exiting the last month multiply that times 0.46 percent and you get this new interest accrued. This is your new prepayment balance. I pay my mortgage again. This is my new loan balance. And notice, already by month two, $2.00 more went to principal and $2.00 less went to interest. And over the course of 360 months you’re going to see that it’s an actual, sizable difference. And that’s what this chart shows us right here. This is the interest and principal portions of our mortgage payment. So, this entire height right here, this is, let me scroll down a little bit, this is by month. So, this entire height, if you notice, this is the exact, this is exactly our mortgage payment, this $2,129. Now, on that very first month you saw that of my $2,100 only $400 of it, this is the $400, only $400 of it went to actually pay down the principal, the actual loan amount. The rest of it went to pay down interest, the interest for that month. Most of it went for the interest of the month. But as I start paying down the loan, as the loan balance gets smaller and smaller, each of my payments, there’s less interest to pay, let me do a better color than that. There is less interest, let’s say if we go out here, this is month 198, over there, that last month there was less interest so more of my $2,100 actually goes to pay off the loan. Until we get all the way to month 360 and you can show, see this in the actual spreadsheet, at month 360 my final payment is all going to pay off the principal, very little if anything of that is interest. Now, the last thing I want to talk about in this video without making it too long is this idea of a interest tax deduction. So, a lot of times you’ll hear financial planners or realtors tell you, hey, the benefit of buying your house is that it, it’s, it has tax advantages, and it does. Your interest is tax-deductible. Your interest, not your whole payment. Your interest is tax deductible, deductible. And I want to be very clear with what deductible means. So, let’s for instance, talk about the interest fees. So, this whole time over 30 years I am paying $2,100 a month or $2,129.29 a month. Now, at the beginning a lot of that is interest. So, on month one, $1,700 of that was interest. That $1,700 is tax-deductible. Now, as we go further and further each month I get a smaller and smaller tax-deductible portion of my actual mortgage payment. Out here the tax deduction is actually very small. As I’m getting ready to pay off my entire mortgage and get the title of my house. Now, I want to be very clear on this notion of what tax-deductible even means ‘cause I think it is misunderstood very often. This doesn’t mean, let’s say that, let’s say in one year, let’s say in one year I paid, I don’t know, I’m going to make up a number, I didn’t calculate it on the spreadsheet. Let’s say in year one, year one, I pay, I pay $10,000 in interest, $10,000 in interest. Remember, my actual payments will be higher than that because some of my payments went to actually paying down the loan. And, but let’s say $10,000 went to interest. To say this deductible, and let’s say before this, let’s say before this I was making $100,000. Let’s put the loan aside, let’s say I was making $100,000 a year and let’s say I was paying roughly 35 percent on that $100,000. I won’t go into the whole, uh, tax structure and the, and the different brackets and all of that. Let’s say, you know, if I didn’t have this mortgage I would pay 35 percent taxes which would be about $35,000 in taxes for that year. Just, this is just a rough estimate. Now, when you say that $10,000 is tax-deductible, the interest is tax-deductible, that does not mean that I can just take it from the $35,000 that I would have normally owed and only paid $25,000. What it means is, I can deduct this amount from my income. So, when I tell the IRS how much did I make this year, instead of saying, I made $100,000 I say that I made $90,000 because I was able to deduct this, not directly from my taxes, I was able to deduct it from my income. So, now if I only made $90,000 and I, and this is I’m doing a gross oversimplification of how taxes actually get calculated. And I paid 35 percent of that, let’s get the calculator out. Let’s get the calculator. So, 90 times .35 is equal to $31,500. So, this will be equal to $31,500, put a comma here, $31,500. So, off of a $10,000 deduction, $10,000 of deductible interest, I essentially saved $3,500. I did not save $10,000. So, another way to think about it if I paid $10,000 interest, I’m going to, and my tax rate is 35 percent, I’m going to save 35 percent of this in actual taxes. This is what people mean when they say deductible. You’re deducting it from the income that you report to the IRS. If there’s something that you could actually take straight from your taxes, that’s called a tax credit. So, if you were, uh, if there was some special thing that you could actually deduct it straight from your credit, from your taxes, that’s a tax credit, tax credit. But a deduction just takes it from your income. And so, in this spreadsheet I just want to show you that I actually calculated in that month how much of a tax deduction do you get. So, for example, just off of the first month you paid $1,700 in interest of your $2,100 mortgage payment. So, 35 percent of that, and I got the 35 percent as one of your assumptions, 35 percent of $1,700. I will save $600 in taxes on that month. So, roughly over the course of the first year I’m going to save about $7,000 in taxes, so that’s nothing, nothing to sneeze at. Anyway, hopefully you found this helpful and I encourage you to go to that spreadsheet and, uh, play with the assumptions, only the assumptions in this brown color unless you really know what you’re doing with the spreadsheet. And you can see how the, this actually changes based on different interest rates, different loan amounts, different down payments, different terms, different tax rates, that’ll actually change the, the tax savings and you can play around with the different types of fixed mortgages on this spreadsheet.


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.
The programs vary in what they can offer. In some cases direct financial assistance may be provided to help you pay your mortgage for a short period of time. Payment plans or reduced monthly payments may be offered. However most of the government programs and non-profit organizations will help facilitate some form of loan modification to qualified homeowners. This will provide families time to get back on track by ideally lowering their monthly payment, reducing interest rates or waiving fees.
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