Predict Your Loan Mod Outcome: Using Net Present Value Tools
Mortgage lenders use Net Present Value (NPV) to determine whether or not to approve you for a loan modification. The formula for NPV is comprised of factors, not all of which, have to do with the value of your home.
You can get an estimate of the net present value of your home by using Making Home Affordable's NPV tool. The government website CheckMyNPV.com allows you to run the numbers before or after your mortgage lender responds to your request for a loan modification.
They even offer a checklist to see before inputting your numbers into the tool which include the following:
- the name of your lender
- a recent monthly mortgage statement for your primary mortgage
- a recent property value
- a recent credit score for the borrower and co-borrower
- your total primary mortgage debt
To learn more about the NPV of your home or to have a FAIR Counselor assist you with questions regarding the loan modification process, chat with us or call us at: (310) 321-1234.