How to Calculate Current Mortgage Payment for HAMP, the Obama Modification Program
The Home Affordable Modification Program makes government-backed mortgage loans, such as those in which FHA, Fannie Mae or Freddie Mac is the investor, more affordable for people who have fallen behind in their payments or are in imminent danger of falling behind. One of the main criteria is the ability of the mortgage servicer to modify the loan in such a way that the borrower's total monthly housing payment comprises less than 31 percent of her gross monthly income. The modification must result in a lower payment than the borrower. A borrower's eligibility is determined by figuring out her total housing payment.
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Instructions
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1
Note your current mortgage payment, including the principal payment and the interest.
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2
Divide your total property tax bill by 12 to arrive at your monthly property-tax obligation. Add the monthly amount to the principal and interest payment.
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3
Add your monthly homeowners, or hazard, insurance and flood insurance premiums, if applicable, to the total.
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4
Divide your yearly homeowner association fee by 12, f you have one, to arrive at your monthly fee. Add the amount of the monthly fee to the mortgage payment.
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Divide by 12 any escrow shortage you're aware of and add the monthly fee to the total. The sum is your current total mortgage payment.
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Tips & Warnings
If you have an adjustable rate mortgage that's due to adjust within the next 120 days, your servicer will account for the resulting mortgage payment increase or decrease in its calculations.
Lenders usually spread out escrow-shortfall payments for up to a year. Shortages commonly occur when taxes or association fees increase partway during the year, without a corresponding increase in the borrower's escrow payments.
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