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rozuki · 03-25-2009, 03:59 PM

I hope someone can clarify this for me...this is from the Obama HASP...

"Determine how much of an interest rate reduction is required to get the borrower's mortgage payment to 31% DTI, and if the DTI still exceeds 31% at the rate floor of 2%, modify the loan in other respects specified in the Guidelines;

• Apply a Net Present Value (NPV) test to determine if modification (including the incentive payments) provides the investor with a better financial outcome than foreclosure. If yes:........."

With our current income being at least a third less this year (and maybe more!) than last year there is no way I can pay my current mtg payment. I have a jumbo loan of 635k at 10.55 (I know it's crazy!!) that I have been paying on time the last 18 months....March is the first month I will not be paying.

I meet all the criteria for Obama's new plan....but even at a floor of 2% mtg rate on my loan amount...it would still be over 50% of the monthly income.

What is Net Present Value??? Would this make it possible to lower the principal amount of the mortgage??

03-25-2009, 03:59 PM	#29 (permalink)
rozuki Senior Member Join Date: Mar 2009 Location: Long Island NY Posts: 356 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	what is npv??? I hope someone can clarify this for me...this is from the Obama HASP... "Determine how much of an interest rate reduction is required to get the borrower's mortgage payment to 31% DTI, and if the DTI still exceeds 31% at the rate floor of 2%, modify the loan in other respects specified in the Guidelines; • Apply a Net Present Value (NPV) test to determine if modification (including the incentive payments) provides the investor with a better financial outcome than foreclosure. If yes:........." With our current income being at least a third less this year (and maybe more!) than last year there is no way I can pay my current mtg payment. I have a jumbo loan of 635k at 10.55 (I know it's crazy!!) that I have been paying on time the last 18 months....March is the first month I will not be paying. I meet all the criteria for Obama's new plan....but even at a floor of 2% mtg rate on my loan amount...it would still be over 50% of the monthly income. What is Net Present Value??? Would this make it possible to lower the principal amount of the mortgage??