Homeowners search for solutions after write-down program is scrapped.

August 20th, 2012

The U.S. government wants Fannie Mae and Freddie Mac to write down mortgages to help troubled borrowers and spur the housing market to recovery. It is estimated that one in five homeowners owe more on their mortgage loan than their house is worth, but the specific program to write down mortgages would have targeted no more than 248,000 borrowers. The debate continues, but the decision not to write down mortgages has now been made and the choices have narrowed for borrowers in this situation.

There are a lot of homeowners struggling to make mortgage payments because they have suffered a drop in income. Likewise, many homeowners continue to pay on home loans even as they've seen their equity plummet. For some people, paying on an underwater mortgage may be so unappealing that they might eventually choose to walk away. But the decision to walk away from your mortgage can ruin your credit and leave you with a sizable tax bill if you don't act before the end of 2012. You might want to explore the options at the very least.

A mortgage calculator can help you weigh the options.

If you're unwilling to walk away from your home and have some home equity and decent credit, a refinance could still be a choice. To get an idea of what type of deal you might qualify for, use a refinance calculator to run the numbers. Depending on your situation, refinancing could lower your payments enough to improve your cash flow.

Using an amortization calculator will give you a breakdown of the principal and interest payments for a refinanced loan. That will show the true cost of a mortgage loan over the entire term. Do as much research as necessary to find the right type of help if you are struggling to make mortgage payments.

A variety of mortgage calculators are available to help compare loans, to determine the affordability of getting a particular loan and to examine other information related to mortgage loans. It is also important to talk with your current mortgage lender or loan servicer to get information about options that may be available to you to make paying a mortgage less stressful.

Posted By :

Housing conditions shift in favor of refinancing

September 12th, 2012

With all the attention given to low mortgage rates in the past couple years, it can be easy to forget about the other key variable in home affordability -- h...  Read More

Homeowners search for solutions after write-down program is scrapped.

August 20th, 2012

The U.S. government wants Fannie Mae and Freddie Mac to write down mortgages to help troubled borrowers and spur the housing market to recovery. It is estima...  Read More

Should you relocate if you still have a mortgage?

August 15th, 2012

Trying to find employment in this economy can be challenging. Moving to a new city or state could open up new job possibilities. But what if you have a house...  Read More

When rates change rapidly, reach for a refinancing calculator

July 26th, 2012

Another new low in mortgage rates is creating opportunities for home buyers and homeowners alike. Today's rapidly changing rates have also made mortgage calc...  Read More

0 Responses to "Homeowners search for solutions after write-down program is scrapped."

No Comments

Leave a Comment