Calculate What Your Mortgage Payment With An Obama Loan Modification Should Be

The program is formally called: “ Affordable Modification Program” and the mortgage payment is link to what the banks ( and now the government) think “you can afford”.

We are calculating the Principal + Interest of your mortgage payment. When you receive the offer from your lender they will add the other housing expenses. You will have the number ( after filling the table) and can do the same.

First let’ see how much you mortgage can afford:

Draw in a paper the following table and fill it out the best you can. Use actual numbers unless told otherwise. Use the number for all the member of the household that are working. It doesn’t matter if they are not in the mortgage docs.

Let’s see according to the government your Affordable Mortgage Payment ( Interest and Principal) Should Be:

Affordable Mortgage Payment = (0.31 * Total Income ) - Total Housing Expenses

This is the number that The Government believes you can pay. Now compare that number with the one you are paying now ( Just Interest and Principal). How is it?

- The Affordable Mortgage Payment is low compare with my actual mortgage payment:

Excellent. You are the perfect candidate for the program. Get ready for the modification, you can read in this website information about the qualification, docs you need and what to do. You need to contact your lender or hire a Loan Modification Agency ( we can refer you to one, contact them, listen to what they say and see if they can help you. Click here to contact the Loan Modification Agency )
You probably have lots of debt too. You will be required to get through Debt Housing Counseling . You will have to consolidate your debts. Start Now and you will speed up your loan modification process. ( We can refer you to a couple of Debt Consolidation Companies and you decide which one to choose. Click Here for Debt Housing Help. Disclosure: we receive a fee for referring you to an agency)

- The Affordable Mortgage Payment is extremely high compare with my actual mortgage payment:

How high is too high? The lowest your mortgage payment can go is at 2% interest a year for 5 years. Let's see what the Lowest Possible Payment is

Lowest Possible Mortgage Payment = [(Actual Loan Amount)/1,000] * 3.7

But don’t count in such a low payment. The bank will try to charge you a higher interest if you can afford it.
If the Lowest Possible Mortgage Payment is still too high for you maybe is time to move on. Probably you bought a house you couldn’t afford or refinance or took a high investment risk and you lost. You are no going to get an affordable loan modification and if you get one you will end up in foreclosure eventually because you cannot afford the payment.

If the Lowest Possible Mortgage Payment is very close to your Affordable Mortgage Payment you are consider a big risk by the lenders. You may get it depending on your situation. If your income now is low because you lost your job but you can go back to your old salary when things get better your chances are good…Click here if you want us to refer you to a Loan Modification Company

- The Affordable Mortgage Payment is about the same of what I am paying:

You can get a Loan Modification. You can get a payment that is even lower that the Home Affordable Modification suggest. You need to be ready to get the best loan modification possible. The banks will probably offer you a “regular” modification. In your case it could be better. Get the best negotiation possible and save hundreds of dollars a month and thousands in interest during the life of your loan. Try to get into the Obama Mortgage Plan if possible or to any other government mortgage program. The fees are lower and they can offer you a lower interest. Also you can receive incentives to pay off the principal. Check if a refinance is an option also.

We can refer you to a loan modification company. Listen to what they have to offer you and decide if that is a good option for you. It can be a good investment of a couple of thousand dollars specially now that you know what your affordable mortgage payment is . They know how to negotiate with the lender and you know what you want.