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I have a question about the HAMP Cap rate

Discussion in 'Countrywide Home Loans - Tell Us Your Countrywide ' started by johngor, Nov 18, 2009.

  1. johngor

    johngor LoanSafe Member

    I have a question as I am trying to research this one and need help I am comming up with nothing!
    I am going through a HAMP mod trial payment I recived an offical HAMP trial package I returned it last week. Our income is now 3400 including my unemployement so my trial payment is 1054.12 this is P.I.T. vs 1553 P.I.T. My current APR rate is 9.5% so I calculated my trial rate to be 5.5% this is welcome news. Now I hear that after 5 years they add on another 1% till you CAP at Year 10. wondering what that CAP rate is I sure hope it is not 10.5%

    Also I have 132 in HOA fees I am also hearing some count it some dont.

    thanks
  2. hope67

    hope67 LoanSafe Member

    The interest rate cap is the Freddie Mac Weekly Primary Mortgage Market Survey (PMMS) Rate for 30-year fixed at the time the modification agreement is prepared.

    As of November 12 09, the rate is 4.91%, your modified interest rate at this point is higher than the cap, so you have nothing to worry about. Your interest rate should never go up.

    To get Freddie Mac weekly rate go to this link, then click "2009 Weekly Mortgage Rates data"

    Freddie Mac's Weekly Primary Mortgage Market Survey

    Here are HAMP guidelines:

    Step 2:
    [FONT=Times New Roman,Times New Roman][FONT=Times New Roman,Times New Roman]Reduce the interest rate. If the loan is a fixed rate mortgage or an adjustable-rate mortgage, then the starting interest rate is the current interest rate. If the loan is a Reset ARM, the starting interest rate is the Reset Interest Rate.
    Reduce the starting interest rate in increments of .125 percent to get as close as possible to the target monthly mortgage payment ratio. The interest rate floor in all cases is 2.0 percent.
    - If the resulting rate is below the Interest Rate Cap, this reduced rate will be in effect for the first five years followed by annual increases of one percent per year (or such lesser amount as may be needed) until the interest rate reaches the Interest Rate Cap, at which time it will be fixed for the remaining loan term.

    - If the resulting rate exceeds the Interest Rate Cap, then that rate is the permanent rate.

    The "Interest Rate Cap" is the Freddie Mac Weekly Primary Mortgage Market Survey (PMMS) Rate for 30-year fixed rate conforming loans, rounded to the nearest 0.125 percent, as of the date that the Agreement is prepared.

    https://www.hmpadmin.com/portal/docs/hamp_servicer/sd0901.pdf


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  3. dan m

    dan m LoanSafe Member

    if its not stepped up to it, they'll leave it fix at that rate

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