If I request a loan modification to my mortgage under the Obama plan is it temporary?

In: Mortgage Loan

15 May 2010

I read that after 5 years the mortgage holder can raise the rate of the mortgage to the prevailing rate.



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4 Responses to If I request a loan modification to my mortgage under the Obama plan is it temporary?

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Knuckles

May 15th, 2010 at 5:44 am

It is not unusual for lenders to have a “fixed” rate for no more than 5 years, then market forces dictate the new “variable” rate ongoing for the remainder of the loan (unless you can fix it again). While rates are low, take advantage of this 5 year period and pay off as much as you can – you will save thousands in interest and take years off your loan

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Joseph

May 15th, 2010 at 6:03 am

Hi,
Depending on how you present your case to your bank it might be temporary or permanent. Learn as much about the process as you can as it will help you negotiate the best terms when you are ready to call your bank. A good do it yourself guide is all you need

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Famus

May 15th, 2010 at 6:21 am

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Marisol

May 15th, 2010 at 7:10 am

Normally I do not reply much but I just want to state that I will be pleased to observe this question answered intelligently.

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