There is Hope for Homeowners
The Hope 4 Homeowners (H4H) program is aimed at helping homeowners that have found themselves owing more on their mortgage than their home is worth. This program can actually reduce the amount that a homeowner owes on their mortgage which leads to a lower monthly mortgage payment.
The Details?
The H4H loan is based on the current value of the home for the purposes of refinancing. A Hope 4 Homeowners’ loan will be 90% of the current value of the home. Having the balance forgiven may have some negative aspects. The Federal Housing Administration (FHA) and your current lender will share in any profits of the house when the homeowner sells their home. This offsets the balance that has been forgiven. {The reduced loan amount results in a lower montly payment}.
Brief Summary:
Let’s say that your current mortgage balance is $400,000 and your home is now worth $250,000. There are millions of homeowners that find themselves in this scenario. You are currently making a mortgage payment on a loan that is much greater than the value of your home. The Hope to Homeowners program will finance a new loan based on 90% of the home value today. This example results in a loan amount of $225,000. That is a reduction of $175,000 in the principal balance of your mortgage. The new mortgage payment will be based on this new loan amount of $175,000.
Will the Payment be Reduced?
The principal reduction of your mortgage is not the only benefit to this program. The Hope to Homeowners loan payment will also be reduced. Let’s say the current mortgage is $400,000 at 6% on a 30 year fixed (the benefits are even greater if you are in an adjustable rate mortgage). The current payment is $2,398. Let’s just assume that the Hope 4 Homeowners loan has the same interest rate as the current mortgage (all H4H mortgages are 30 year fixed). The H4H payment is $1,348. That is $1,050 in monthly savings. The benefits are substantial.
There are some qualifying factors that homeowners need to understand. Now that you understand the benefits of the Hope 4 Homeowners program it is time to do a bit more research and find out if you can qualify for this program. Keep in mind that there are some negative aspects of this loan. You may give up some of the equity that your home builds when you sell your home. This program will however help many Americans keep their homes. The H4H program can and will provide some much needed hope to homeowners that are upside down on their mortgage.
This company can help you find out more. Hope for Homeowners
Tags: FHA, H4H, Hope for Homeowners, Hope to Homeowners, Lower Payment, Principal Reduction, Program