30 Year Mortgages Around 5.25% – Do You Qualify for a Mortgage Loan Modification?

Today the national average rate for a 30 year mortgage is around 5.25%, and 5 year adjustable rate mortgages (ARM’s) around 4.50%. But the real question on most folks mind is if they should refinance their mortgage, or do they qualify for a mortgage loan modification under the new Obama rules?

You may qualify for a Mortgage Loan Modification if:

You own and occupy your home as your primary residence.
You are either current, at risk of imminent default, or behind in your mortgage payments, or are in foreclosure or bankruptcy.
The unpaid principal balance of the first mortgage on your primary residence is $729,750 or less (loan limits are higher on owner-occupied multi-unit properties).
You have verifiable source(s) of income to put towards a mortgage payment each month, even if that income has recently been reduced.
You can provide copies of your most recent tax returns and will sign an affidavit of financial hardship.
You have not previously modified your mortgage under the MHA program.
Note: Mortgages on second homes, vacant homes and investment properties are not eligible for modification under this program.

If you meet these guidelines, contact your loan servicer and see if they will work with you. If you just need to refinance, find a lender who has low rates and fees and does not require a credit card deposit to take your mortgage loan application.