The Waterfall Method of modification is a a standard formula that is used on all HAMP loan mods. You must pass this calculation if you are going to get approved-so it is important to understand how it works.
The benefit of using the Calculator to figure out your own specific financial
requirements for passing the Waterfall Method is that you can learn ahead of time just where you may need to make adjustments in order to pass. The loan modification Calculator will automatically compute and display:
- Monthly income requirements
- Debt Ratio
- New loan terms, including: interest rate, length of loan term, eligibility for principal reduction
What is the Waterfall Method of Modification? It is a series of loan term changes that are used in order to obtain the new target mortgage payment. This new payment will equal 31% of your gross monthly income and is designed to be affordable and sustainable. A loan modification will only be offered to those borrowers whose financial situation passes this test.
- First, lower the interest rate to as low as 2% for a 30 year term
- If the target payment cannot be reached, then extend the loan term out to 40 years.
- If still more is needed, then reduce the principal balance to reach the target payment.
The loan modification calculator will instantly show you if you are a PASS or a FAIL for the Waterfall. You may need to fine tune your budget figures in order to pass-your monthly income may be too high or too low. If you don’t know this ahead of time then you may not be able to complete your financial worksheet correctly, and your lender will not approve you.
The loan mod calculator will instantly compute and display your new loan terms-and show you how to get the very best loan workout you can qualify for! How do you know what to ask for if you do not know the Waterfall Method?
Get the real answers you need to apply correctly-use the powerful, proven system designed specifically for homeowners. The Complete Loan Modification Guide kit includes the Loan Modification Calculator and gives you the specific, detailed information you
need in order to pass the Waterfall Method. Visit MyLoanModificationCenter.com today for more information and get started now.