Loan Modifications Help South Fla. Homeowners Save Money Mortgage Moneysavers

“I am going to be saving a couple hundred dollars a month,” said South Florida resident Kristen Martin. Martin, a homeowner, said she’s looking to cut mortgage payments. These days, she said, any savings can make a difference. “First, with interest rates dropping, do a loan modification — especially beneficial if you’re in an adjustable mortgage,” said James Venney from Homeservices Lending.

“A modification would be a change of the original terms, and that change would typically be something like retaining the original interest so it doesn’t start adjusting or changing that interest rate to a lower interest rate.” “I wanted a 30-year fixed, but it wasn’t possible at that time,” said South Florida homeowner Marina Davis. “The rate was too high.” Officials said that now, Davis will find much lower rates.

“So, see about refinancing — an excellent idea if you plan to stay in your home for the long run,” Venney said. “For example, on a $400,000 home with an interest rate just above 8 percent, your monthly payments are over $3,000. But if you refinance at today’s rates, you can save about $700 each month. Interest rates have dropped dramatically.

It’s something that everyone should explore, especially if they obtained their mortgage before, say, the middle of 2007.” For example, it would cost $8,500 to refinance a home that would cost just $1,500 to modify, Venney said. He said the trick is getting a lender to approve the modification. “Its more efficient than a refinance from a cost perspective,” Venney said. “Eliminate your private mortgage insurance, or PMI. You can save $100 to $200 a month here.