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Firstly, thank you Barack Obama! The Obama Administration introduced the new mortgage loan modification plans on March 4th 2009. If you are not fully up to speed on this process, here are a few guidelines:-

- To be eligible your mortgage must have been taken out before 1st January 2009 and the amount was lower than $729,750.

- This is your main mortgage (second mortgages are not included in this plan) and you are residing in the property

- You need to be in financial hardship and struggling to make your mortgage payments and possibly even facing foreclosure

Now Obama's new Mortgage Loan Modification plans will require you and your mortgage lender to agree on certain arrangements. The main points are that your lender will lower your mortgage payments to 31% of your monthly income. This is done by either reducing your interest rate, extending the term of your mortgage or both. You must agree to make your new payments in full and on time and will then have your mortgage balance reduced by $1000 a year for a maximum of 5 years.

Now the costs involved are those that are charged by a "middleman". Usually a mortgage loan modification company or a specialist attorney will help you with the process. However on avearge you can expect to be charged anywhere between $1500 - $5000. Now if you had that sum of money readily available, i guess you wouldn't be struggling to meet your mortgage repayments.

This is where many people are now turning to do-it-yourself mortgage loan modification kits. These kits will provide you with all he relevant information and step by step blueprints for you to follow.

These will show you how to fill out the relevant application forms. They will also provide information about how to write a successful financial hardship letter. You will need to provide a declaration of income and expenses and certain documentation to prove this. The DIY kits will also provide you with a full checklist of what is required.

If you desperately need to lower your mortgage repayments and don't have up to $5000 to start the process, then you need to take advantage of a DIY [http://badcreditfastloans.blogspot.com/2009/05/whats-all-this-about-mortgage-loan.html]Mortgage Loan Modification Kit today.

To find out if you qualify for President Obama's financial help please [http://badcreditfastloans.blogspot.com/2009/05/whats-all-this-about-mortgage-loan.html]Click Here.

Article Source: http://EzineArticles.com/?expert=Sam_Renstaff http://EzineArticles.com/?How-Much-is-Barack-Obamas-New-Mortgage-Loan-Modification-Actually-Going-to-Cost-Me?&id=2384777