Millions of people today are having problems with their mortgages. In fact, hundreds of thousands of people are in the brink of losing their property due to home foreclosure. There are a lot of methods that you can do if you are serious about dealing with your mortgages. One of the most popular methods is called home loan modification. This article will be showing how you can estimate your home loan modification just like how banks do.

The first and best thing that you need to do when dealing with mortgage problems is to be as calm as possible. There are a lot of people who were overwhelmed with their problems, and making designs out of fear and frustration. Before you estimate your home loan modification, you need to relax, allowing yourself to think deeper and broader when it comes to your mortgage.

Last year was a great year for people who are applying for a modification, because starting January 1 2010; lenders will be obliged to tell you the reason why your application was rejected. This will give you a chance to edit your modification and straighten out the terms that caused your application to be rejected.

When it comes to calculating the minimum amount acceptable for modification, your lenders are using a formula to calculate the rates. The minimum amount that a person needs to pay for a home loan is at least 31% of his gross income or the so-called debt-to-income ratio. If you are already paying an amount lower than this, then you can no longer modify the terms.

In order to get your DTI (debt-to-income) ratio, you need to sum up all your income without removing your taxes. This is your gross income. Multiply it by .31, which is the 31% of your gross income. This is the minimum amount that you can pay for a home loan.

There are other formulas being used by your lenders in order to determine whether you are eligible for a modification or not. You can approach a home loan attorney or company to learn more about these things. They will also be providing you with a free quote which will help you further assess your current financial status. Always remember that there are a lot of things that you need to consider when applying for a home loan modification, which is why having a professional beside you is advisable.