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Roberto77 · 07-02-2009, 06:16 AM

ILResident,

Forgot this. If still above 31% after 2% mtg calculation, the term can be extended to 40 years. If still above 31% after 2% and 40 years, principal forbearance must be used to achieve the 31% target. Principal forbearance is good because it is interest free and non-amortizing. The principal forbearance is paid off when you sell the home or payoff the interest bearing mtg.

Robert

07-02-2009, 06:16 AM	#3 (permalink)
Roberto77 Senior Member Join Date: Mar 2009 Posts: 34 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: BOA and Making Home Affordable Program ILResident, Forgot this. If still above 31% after 2% mtg calculation, the term can be extended to 40 years. If still above 31% after 2% and 40 years, principal forbearance must be used to achieve the 31% target. Principal forbearance is good because it is interest free and non-amortizing. The principal forbearance is paid off when you sell the home or payoff the interest bearing mtg. Robert