Can I Lower My Modified Loan Payment By Getting Cheaper Insurance And Lowering My Property Tax

by Barbera
(Las Vegas, NV)

If I find homeowners insurance that costs less than my current insurance company, will the modified amount that I pay go down or will it remain the same?

If my property taxes are lowered on the house will my modified payment go down or will it remain the same?

Mortgage Loan Modification Answer:

by Loan Modification Expert - Dan North

Under the Home Affordable Modification Program your modified payment is based on 31% of your gross monthly income.

The 31% of gross income target amount is to include:

Your monthly mortgage payment

Your monthly Homeowner's Insurance payment

Your monthly property tax payment

Any monthly Home Owners Association fees or Condo Association fees you may have.

To Save More Money Lower Your Insurance and Property Tax After You Get Your Loan Modification Approved

If you are trying to reduce your monthly expenses get the modification done first then get cheaper insurance and get your property taxes lowered.

If you do the above before you get the modification done, your modified mortgage payment will be raised to the same amount that you save.

The HAMP program target payment is 31% of your gross income and mortgage payment + insurance + property tax should total 31%.

Lowering Property Tax and Insurance Payments First Can Help You Get Approve

If you are borderline on getting approved for a loan modification then lowering your insurance and property tax may be all that you need to get your mortgage modification approved. In which case do that first. Your total payment will still be 31% of your gross income but maybe it will mean the difference between getting a loan modification approved or not.

Here is a good step by step guide on lowering your own property taxes.

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