Need advice:Have a look MHA offer from BofA

[cycle87]

Hi everyone,

I finally could get a offer from BofA through NACA
Here's my situation, I'm paying $1600 monthly for the 1st mortgage including $200 of tax and insurance at 6.5% 30 year fixed.

What BofA offered to me today is that first year 2% and then the rate increase every year. ( I think this is from the Obama's Making Home Affordable program)
I don't know how much it lowers my monthly payment, but I think it reduces significantly.

I know this offer is good offer compared to my current one.
but I do want to know how good this offer is. Let me know what you think

Thanks for any input

[AzGryffindor]

No. That would not be the HAMP program.

The HAMP program reduces your monthly payment to 31% of your gross income by lowering your interest rate to as low as 2%. They can also extend the loan term to as long as 40 years and implement a principal forebearance.

Under the HAMP program your interest rate stays at the reduced rate for 5 years. On year 6 your interest rate will increase by 1% per year until it reaches what the Freddie Mac Index rate was on your final loan mod docs (the paperwork you should receive after you've completed the 3 month trial period).

I have no idea what they've offered you. Did you receive your paperwork via Fed Ex? Does it say Making Home Affordable anywhere on the paperwork?

[minknmelissa]

If my family were offered this i would have a party so i guess it depends on what you think is good I think its great its what i have been fighting for

[ugh_2009]

hey cycle87,

what is your mortgage amount on the 1st, close to 220k? Your new payment should be around $1015 for the first year (including taxes), so considerably lower.

are you planning on staying at the house for a long time? long term the Obama plan is probably better because you are going to end up with a lower rate (probably around 5.5%). But you'll also have to wait a few more months before this can happen. The Obama plan will still be available for you until 2012 so you can always apply later if you need it.

ugh

[sandyg]

Originally Posted by cycle87

Hi everyone,

I finally could get a offer from BofA through NACA
Here's my situation, I'm paying $1600 monthly for the 1st mortgage including $200 of tax and insurance at 6.5% 30 year fixed.

What BofA offered to me today is that first year 2% and then the rate increase every year. ( I think this is from the Obama's Making Home Affordable program)
I don't know how much it lowers my monthly payment, but I think it reduces significantly.

I know this offer is good offer compared to my current one.
but I do want to know how good this offer is. Let me know what you think

Thanks for any input

What did naca tell you about the offer?