H4H Lowers your Mortgage Payment!
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.
Tell Me More?
The current value of the home determines the new loan amount for a refinance. A Hope 4 Homeowners’ loan will be 90% of the current value of the home. Not all aspects of this program are positive. The Federal Housing Administration (FHA) and your current lender will share in any profits of the house when the homeowner sells their home. This is to offset the balance that has been forgiven. The lower monthly payment results from the reduced loan amount.
An Example:
Let’s say that your current mortgage balance is $400,000 and your home is now worth $250,000. If you find yourself in this scenario you are not alone. You are currently making a mortgage payment on a loan that is much greater than the value of your home. The new Home for Homeowners loan will be determined by 90% of the current appraised value of the home. $225,000 is the new loan mortgage balance in this scenario. 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.
What will the New Payment Be?
There are benefits beyond the principal reduction in your mortgage. 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). $1,348 would be the payment for the Hope to Homeowners loan. That is a reduction in monthly mortgage payment of $1,050 a month. There are obvious benefits.
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. Negative aspects are involved in this loan. You may give up some of the equity that your home builds when you sell your home. Many Americans can keep their homes with this program. 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 2 Homeowners