How to Get a Mortgage Loan Modification [mortgagerefinance-101.blogspot.com]
www.bills.com Ethan Ewing, President of Bills.com provides advise and tips to get the best deal on your mortgage loan online. These days, getting a mortgage loan can seem overwhelming. It does not have to be complicated if you follow a few simple steps. Watch this video with Ethan Ewing, President of Bills.com, to learn about tips to get the best possible rate on your mortgage. Find more personal finance advice, services and information at bills.com
mortgagerefinance-101.blogspot.com Advice & Tips on Getting a Mortgage Loan Video | Bills.com
Homeowners are asking the question, how do I get a loan modification? The best way to get your current mortgage changed is thru your current lender. You need to let them know that you are getting behind on your bills, and that you want to learn more about the loan modification process.
The U.S. Government has over 75 billion dollars available to help homeowners who have fallen behind their mortgage payment and could be facing foreclosure, get a second chance at the original mortgage loan terms, and bring down the payments so that they can hold on to their property.
When you apply for the loan modification you will need to show that yes indeed you are having a problem paying your bills, and that you do want to find a way to hold on to your home and not go into foreclosure or even bankruptcy. Make sure you write a letter of hardship that explains your current situation and why you need the help.
The lender will be basing your new mortgage terms on how much you will be making in the future and how much you can afford to pay a month for the modified loan.The theory is that it is better for someone that owns a home currently, and wants to stay there but is having financial shortfalls, is better than an empty property and a loan that went bad. That is why the money was put aside for the loan modification program. You will have to put in about the same amount of effort you did when you originally bought the house, but if you qualified the first time, chances are you will qualify again.
Take time to talk to your lender and let them know about your current financial situation. Make sure you do research on your end to better understand the paperwork they will need, and when you show that you have done your homework, you might be surprised at how simple the process really is.
Find More How to Get a Mortgage Loan Modification IssuesQuestion by Bri up: How do Mortgage loan officers make their money? I'm getting a mortgage loan through a mortgage company but the guy that is giving me the loan seems a little bit to excited. How much money is he making off of the loan of 170,000 and what should I look out for? Best answer for How do Mortgage loan officers make their money?:
Answer by healthspot_2000
We are on commission only. He is making 1% on the front which is the origination which equals 1700, if he is not making any money in the rate (on the back) more than likely he will make more money on the front (in the origination fee)
Answer by SMEAC
by charging commissions and fees
Answer by iceman
Either on an origination fee --which normally is around 1%. Or from the bank they are using to get your loan. Our mortgage broker waived all upfront fees and was getting paid only from the bank that was supplying our mortgage.
Answer by mazziatplay
Lenders price loans at various levels. Par is the interest rate with the borrower paying no discount points to reduce the rate and no yield spread premium is being paid to the loan officer for locking the borrower at a higher rate than par. Locking at higher than par is not always detrimental to the borrower as the loan officer can use the yield spread premium to pay some of the borrower's closing costs but there are loan officers who will quote and lock a borrower at a higher rate in order to increase their income on the loan. Typically, the average loan fee (as compared to discount points) is 1% of the loan amount. Because you are working with a broker, he is required to disclose any yield spread premium on an updated Good Faith Estimate if he locked your rate at a higher rate than the original rate quoted. If he locked you at the originally quoted rate and the rates dropped between the time of the quote and the lock, he may have picked up some yield spread premium that you would not normally see until you get your HUD 1 closing statement. I would suggest you ask the title company for a copy of the HUD 1 prior to signing so that you may examine the disbursement breakdown on page 2. If you find he is getting yield spread premium that you feel is excessive for the work performed you can go back to him and demand he renegotiate the lock to the rate that was par on the day you locked. You may have to pay a re-draw fee on the documents so evaluate the savings. Most lenders will agree to that since it represents no loss to them. Let me know if you need assistance reviewing the HUD 1. Now, I'm not saying there is anything wrong with a loan officer being compensated via some yield spread premium. On some days there really isn't a rate quoted at par, there may be a bit, but not a lot, of yield spread and some loans take more work than others. People deserve to be fairly compensated for their time and service. But loan officers who conciously jack up a rate on a borrower and misrepresent it as par or who simply jack it up on a simple loan to get more money are ethically challenged and need their hands slapped.
Answer by dancing11freak
The loan origination fee, processing fee and discount points. You should have been given what is called a Good Faith Estimate (GFE). This should tell you what he is charging you to do the loan. The loan officer doesn't get all that money. The broker usually receives around 40% of those fees to cover overhead expenses. For $ 170,000 loan you really should be paying around $ 2250 for all fees to broker. If y ou are comfortable with those fees be sure to ask your loan officer to put all the fees into the loan origination line of the closing statement (origination, processing, appraisal, credit report fee). This expense can be amortized on your taxes. If this is separated on the closing statement you can only expense the origination fee unless you pay for the appraisal with your own check.
