Bank of America loan modification program is for all those Homeowners who are encountering difficulties due to bad credit history and thus unable to meet their liabilities. Problems pertaining to foreclosure can be eased out completely with the assistance of these loan modification programs. This programs aims at revising all the terms related to loans through negotiation between homeowner and lender.
Bank of America Loan Modification Program Explained
Bank of America has recently initiated loan modification program for homeowners, who are unable to pay their loans back to banks. A wide variety of programs have been started by Bank of America and these programs are mentioned below:
1. Adjustable Rate Loan: A customer has to give lower interest rate and modifications can also be done in these rates as per the condition of the market. The rate of interest may either be low or high so, a person may have to give high rates when situation demands. Following is list of the options that is available with adjustable rate loan:
3/1 ARM: For the first three years the rate of interest is fixed, and then, modifications in the same are done in every year for the rest of the life. In this case, the installment and rate of interest may change as per the situation of the market.
1. 5/1 ARM: For the first five periods, the rate of loan is fixed and then, changes are done every year. In this case also, the rate of interest and installment may change according to the situation of the market.
2. 40 Year Fixed Rate Program: One has to give lower installment on monthly basis. In this program one has to give a fixed rate of interest, which is not changed at all.
3. 30 Year Fixed Rate Loan Program: In this program, a person has to give fixed rate of interest and this program is normally continued for long period of time.
How to Qualify for Bank of America Loan Modification Program?
If you want to avail the benefits of loan modification program, then you have to qualify for the same. You should ask everything pertaining to this program from reliable sources and after getting complete information, you can proceed further.
Article Source: http://EzineArticles.com/?expert=Harmeet_Singh_Chugh
By Harmeet Singh Chugh
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