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Going to try the Home Affordable Modification Program Trial Period do I need to try & pay my past due payment?

I am entering into a Home Affordable Modification Program – The trial period is 3 months and then if I make my payments timely it will become permanent. Right now I am one payment behind in my mortgage. If I am not able to catch up that payment, will it be added to the balance of the loan? This is what the paperwork says “Any difference between the amount of the trial period payments and your regular mortgage payments will be added to the balance of your loan along with any other past due amounts as permitted by your loan documents.” Does that sound like they will just add it?
I know I can’t have one month free, just wanting to know if I need to try and come up with the payment before I enter into this Modification Agreement or not.

Yes it will be added. You are not entitled to have the house for a month for free.

Loan Modification, Home Loan Modification, Mortgage Loan Modification, Mortgage Modification

MGIC Investment Corporation communique ses résultats du deuxième trimestre 2010 MGIC Investment Corporation a annoncé aujourd'hui un bénéfice net pour le trimestre terminé le 30 Juin 2010, à partir de 24,6 millions de dollars contre une perte nette de 339,8 millions de dollars pour le même trimestre il ya un an.
Jordan and Issa Call for End to Failed, Wasteful Obama Mortgage Program

mortgage/refinance?

based off of the most common outlook for the housing and financial markets, are mortgage and refinance rates going to decrease?

The answer is right now, it is anyone’s guess as to what is happening with the market, because the entire market is collapsing at the same time. I work for a very large conventional mortgage lender, and the ususal indicators that would point to rising/lowering rates are conflicting at this time.

That being said, here is what is going on, or things you can follow that may help better answer your question:

1. The dollar is weak – normally would mean rates increase, as this would help attract foreign currency, and push the value of the dollar back up, and thus lower rates in the long-run.

2. Mortgage rates follow the 10-yr treasury index – long term mortgage rates typically follow the 10-yr treasury, and this is the best indicator of rate behavior from one day to the next. Rates will run anywhere from 2-3.5 points higher on average depending on other factors.

3. Fed cuts do not equal mrotage rate cuts. This is the oldest myth in the books, but Fed ACTIVITY and DECISIONS can impact mortgag rates. Example, the last 3 fed cuts in 2007 pushed mortgage rates UP.

4. Good news for the stock market is generally bad news for rates, as people take money out of bonds/treasuries, and dump it back into stocks, thus increasing yields.

5. Recessions are typically good for rates, as people invest mroe in bonds/treasuries during these times, pushing yields down.

6. Liquidity – or what people call demand – will affect rates. If there is no demand for mortgages on the secondary market (as there is right now) then rates go up, and vice versa.

7. PMI companies – yes, these people have a big impact on mortgage programs and rates. You will not be able to finance 100% of a home anymore, at least not conventionally for some time, as the PMI companies will not insure them anymore. Also, two of the largest PMI companies in the US are not expected to make the end of the year, so expect rates – based on this alone – to increase, unless something else happens.

8. Bear Stearns, and other such companies, that go under affect liquidity, and thus rates, and program availability, etc.

As you can see, these are only some of the issues that affect rates. Right now the trend is upward, and it is anyone’s best guess as to when it will stop. According to Greenspan’s book, he sees rates going back into the double digits sometime in the coming years like back in the 80′s.

Also, a mortgage program that was available yesterday, may not be availabe in a week, or even tomorrow, and there is no control over this. We live in a free market, and therefore, these changes happen all the time.

Also, the agencies (Fannie Mae and Freddie Mac) that govern conventional mortgages are implementing pricing adjustments that will affect everyone with scores less than a 710 pretty soon, so rates will be much higher for people with lower scores.

Lastly, mortgage markets are forward-looking, and if the investors feel the news is bad, which it is right now, expect rates to reflect that. Inflation is increasing, and so will rates.

I know that this may not directly answer your question, but I hope it helps.

Mortgage Refinance Rates – Not Moving Lower?