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Hardship on a Home Loan? Get a 2% Rate With a Free Government Loan Modification Program

Facing a hardship on your home loan and need to get some help fast?  The federal government has stepped in and is offering a 2% rate for borrowers who are struggling to make their mortgage payments due to a financial hardship situation.  The current economic recession and housing meltdown has affected millions of American homeowners and is causing record numbers of mortgage defaults.  The government is reaching out a helping hand with a home rescue program that you may qualify for.

A hardship on home loan payments may be caused by many factors.  Generally, a loss of income or an increase in expenses can be the reason you can no longer afford your current payments.  Obama’s federal government loan modification plan was designed to help homeowners who have:

  1. Reduction in, or loss of, income
  2. Change in household financial circumstances
  3. Increase in expenses
  4. Lack of sufficient cash reserves to pay mortgage and basic living expenses-excluding retirement accounts, emergency funds
  5. Excessive monthly debt payments and overextension with creditors
  6. Other reasons for hardship-medical, military services, etc.

You do not have to be delinquent on your home loan to apply and qualify, but you must be able to demonstrate that you are at imminent risk of becoming late and are facing a hardship.  The lender will ask you for a financial statement that details your current income, expenses, and assets.  Based on the information you provide, they will then use a standard formula to determine if you meet the approval guidelines. 

If you have a hardship on your home loan, then it makes sense to learn the very same formula your lender will use to determine if you qualify for help.  You can then use the same steps to prepare your financial statement, make any necessary adjustments, and then increase your chances of getting approved for a loan modification.  Take a couple of hours to learn this very important formula, it will be well worth your time.

Why Getting Bad Credit Home Loans Can Be Good

One thing that people don’t realize is that getting bad credit home loans can sometimes lower your monthly payments and provide relief from other high interest debts like credit cards. They also don’t think about the other benefits that come with bad credit home loans such as the boost that the new loan will give to your credit score. Just by itself the credit repair is justification for taking a poor credit loan. And, you can consolidate all of your other higher interest debts into one lower interest rate loan with just one monthly payment.

With the internet being so pervasive these days it’s easy to do all of your bad credit home loan research online and save yourself loads of time. It’s so easy to go online to compare the individual bad credit lenders and see their fees, costs and interest rates at a glance. If you’re considering bad credit home loans make sure that you research well and check out a variety of lenders to find the best rates and fees for the loan. Bad credit lenders rates can vary widely. One good thing is that the online credit applications are very easy and straight forward to fill out. The credit companies make them easy because they want your business.

The past 18 months has seen the demand for bad credit home loans skyrocket. In addition, all types of poor credit loans are seeing increasing demand. This is due in part to the U.S. mortgage crisis combined with a poor economy. As you might expect, there are also a greater number of online poor credit lenders to take advantage of this increased demand for their services. Because many of the online bad credit lenders are new you must make sure that you check them out carefully before giving them any of your personal information. Check that the lender is licensed in your state and make sure you feel comfortable with them before you agree to anything.

If you’re considering a poor credit home loan the first place to look is at FHA loans through Freddie Mac and Fannie Mae. These loans are made for those with less than perfect credit and you’ll often get better rates from them on an FHA loan than you would from a traditional lender like a bank or credit union. They will also give you a much better deal than you’ll get on bad credit home loans through and online lender.

The biggest thing that will affect your interest rates and the fees and costs of the loan is your credit score. Having a score below 640 could very well limit you to an 80% loan, meaning you will need to have a 20% down payment. On the other hand, there are some bad credit mortgage specialists who will work with you even if your credit score is as low as 560. Keep in mind that the lower your credit score the higher the interest rate will be on the loan, so you may be better off waiting several months to a year while working on improving your credit score before you apply for a bad credit home loan.

The bad credit lenders will make sure that all collection accounts have been paid and that there are no recent bankruptcies. They will also look at your current payment history on your mortgage, car loans and credit cards and these should all be current with no late payments in the past year.
If you have all of these things covered then getting a bad credit home loan should be easy. They can also be a great way to become a home owner and increase your credit score for the future.

Home Loan Interest Rate – Guide To Get The Best

Home Loan is the most affordable means to realize your dream home. Banks charge a percentage on the amount funded as interest. Interest rate in Home Loan refers to this annual percentage (APR) which the borrower needs to pay.

Loans are obtainable from various institutions at attractive rates. Banks propose two types of rates namely fixed rate of interest and floating rate of interest. Though tough it is the most vital judgment for the customer to choose the appropriate scheme while availing home loans. It allows the repayment in fixed equal monthly installments (EMI) over the entire tenor of the loan as it does not change with market fluctuation. A certain percentage of the principle amount is settled and this remains steady for the complete tenure. Floating interest rate also termed as Adjustable Rates refers to interest rate that depends on market and varies according to economic state of the country.

Media reports on banks raising interest rates due to inflation might direct you to opt for fixed interest rate, but in reality, this might not be a good choice. Keep in mind that banks do have the authority to revise the rate because of unforeseen alteration in the money market condition even during the period of agreement. It is therefore essential for the applicant to go through the loan agreement methodically and then fix on the interest scheme. In general floating rates for home loans are cheaper than fixed rates.

Banks however provide customer the option of switching the rate scheme by paying a switch fee any time during the loan tenor. Every financial institution has their own pricing for home loans, land loans, LAP. The interest rate is determined by the bank on the basis of the PLR (Prime Lending Rate). Any change in base rates, will automatically apply to the old customer as well as new customers without any discrimination.

The rate offered by the institution depends on customer’s job profile, builder profile, residence location, type of home loans opted for, relationship with the concerned financial organization etc. Banks line interest rates in various ways (ex. monthly reducing rate, flat rate), so just looking at the rate alone one might not get a true picture of which loan quote is the best. Banks do offer housing loans to NRI clients as well, but the rate offered to them is different from that of general customers. RBI has banned lending below Base rates barring restricted categories such as employee loans, loan against fixed deposits etc.

To guarantee that our customers get the unsurpassed interest rate we in Moneylaxmi have consolidated all the information associated with the topic along with current rate of interest for all the banks at one place.