What Is A BTO Modification Loan?
As economic conditions in the United States are still shaky in 2010, many homeowners are finding that they are struggling to pay their mortgage loans. Many banks have loan modification programs that allow homeowners to reduce their monthly mortgage payment and remain in their homes.
Other People Are Reading
-
Benefits
-
A BTO, or built-to-order loan modification allows the bank and the homeowner to agree on a modified set of terms for the loan. For example, if a homeowner has a 15 year, $1,200 per month loan, a BTO modification may change the length to 30 years and lower the monthly payment to $700.
Options
-
Most large banks have loan modification programs in place to help struggling homeowners. In addition, the U.S. Government has established a program to make loan modifications more accessible to the average homeowner. If you meet certain criteria, the government can modify the terms of your loan to make it more affordable.
-
Warnings
-
Your bank may not be willing to work with you to modify your mortgage. In some cases, the bank may agree to modify the loan but not lower the payment to something you can afford. Also, you do not have to pay a third party service for a loan modification. The U.S. Government provides financial counseling for free.
-
References
Resources
- Photo Credit house image by kruszek from Fotolia.com
