Real Estate, Finance and Home Articles of Interest

Home foreclosures are the end result when property owners fail to pay their mortgage for an extended amount of time. When the bank decides to start the action, they file a public default notice. If the defaulted fees are not paid and the property owners does not sell the house, then the lender has the option to take ownership of the home. When banks choose this option they normally do it to resell the home on the open market. Real Estate Owned (REO) properties are properties that the bank has taken back. Countrywide home mortgage foreclosures have increased over the previous six months. Fortunately Countrywide is proactively taking a position in helping present patrons pay off their loans while encouraging new patrons to acquire their loans with them.

Countrywide is offering non-countrywide patrons a 5.75% rate on a 30 year refinance mortgage while existing countrywide patrons receive a rate based on their past payment history. Countrywide home mortgage foreclosures have been on the increase as existing patrons aren't able to make their payments. As previously stated, Countrywide is creating alternatives to help their patrons pay off their home home loans. So what are these methods?

One alternative that Countrywide may offer you is reducing your home mortgage interest rate. Interest rates make an enormous difference when it comes to paying a home mortgage payment. For example, if you purchased a home for $150,000 at a 5% interest rate then you will have paid $7,449.74 after 1 year of paying your monthly payment of $805.23 on time. So if Countrywide lowered your interest rate only 1% then you will have paid $5951.92 after 1 year of paying your monthly payments on time. That is a difference of $1,497.82 a year. Obviously, interest rates make a an enormous difference on your payoff amount.

Another method that Countrywide is using to help patrons pay their home home loans off is through refinancing their home mortgage. Let's say you now have a 15 year mortgage at $150,000 with a 7% interest rate. If you are finding it hard to make these payments so you look into refinancing your mortgage to a 30 year note instead of 15 years. With the mortgage rate remaining $150,000 at 7% interest rate for thirty years, your payment would be reduced from $1,348 to $998 which is a difference of $350 a month. That amount in today's economy would pay for your gas to travel to work.

Countrywide home mortgage foreclosures have been on the rise over the last six months, it is encouraging that they are finding ways to assist their patrons. If you are having problems making your payments you should consider refinancing your current home mortgage.