The new monthly payment varies according to the amount owed and the interest rate you receive, but it is usually in the field of $200 to $300 (assuming a $40,000 loan with a 25-year repayment period.)
If you contact Wells Fargo before you are prepared, you run the risk of giving them the wrong information which will hurt your chances of approval.
This government loan workout offers the opportunity for millions of homeowners to reduce their interest rate and achieve a low affordable monthly mortgage payment.
Homeowners can pre-qualify themselves by learning how to calculate their own debt ratio, how to arrive at a target modified mortgage payment and how to complete the required loan modification forms properly.
They are a few options to changing your current mortgage – The bank, at its discretion, can choose from a number of options to provide you with a lower payment and/or a new principal balance. It can extend the term of the loan to 40 years, from let’s say an existing term of 30 years