Does anyone understand the “loan modification program” announced today?
It says one method of reducing the payments will be lowering the interest rate as low as 2%. But it says the reduced payments will only be in place for 5 years. So what happens after 5 years? Does your interest rate go back to what it was? Do you ever have to repay the money you saved by having the lower rate for 5 years? How do you know if you have a Fannie Mae or Freddie Mac loan? Mine is with Chase. Is that FM or FM? How do you get the ball rolling if you want to try to do it?