ONGOING TURMOIL IN THE HOUSING MARKET IMPACTING HOMEOWNERS MORE THAN EVER BEFORE; HERE'S WHAT YOU NEED TO KNOW

NEWTON, Mass., -- For many homeowners, the daily news about the housing crisis is increasingly worrisome. The recent rise in interest rates has sent even more homeowners careening, and those with ARMs are acutely aware that their home financing situation might become unstable. On top of a steep decline in home values and a rising unemployment rate, refinancing to escape a rate increase with an adjustable rate, non-confirming loan such as an ARM, might be impossible.

Now more than ever, it's imperative for homeowners to understand how to determine one's home financing health and eligibility for refinancing or modification. MortgageReport.com, a new website that gives homeowners a solid understanding of their unique home financing situation and potential options, such as loan modification and refinancing, helps homeowners with the following:

Know Your Home Loan. Is it a fixed- or adjustable-rate mortgage? When will it reset? Is it indexed to the one-year US Treasury bill or LIBOR (the London Interbank Offered Rate)? These are just a few of the most basic details needed to help determine potential options.

Do the Math. Many homeowners have a good sense of their credit score, home value, and household income but aren't aware that other key metrics actually determine their ability to borrow, such as loan-to-value and debt-to-income ratios.

Loan-to-value: This ratio compares a mortgage amount to a property's appraised value (e.g. with a mortgage of $200,000 on a house appraised at $250,000, the loan-to-value ratio is 200,000/250,000 or 80 percent). As this ratio increases, qualification becomes more difficult.

Debt-to-income: This ratio compares housing-related expenses including mortgage, taxes, insurance, etc. to income (e.g. with an income of $60,000 a year and housing expenses of $18,000 a year, the debt-to-income ratio is 33.3 percent). Generally speaking, banks prefer debt-to-income ratios no higher than the low 30 percent range. For those with a debt-to-income ratio above 38 percent, refinancing might be difficult, though loan modification might be possible.

Explore All Options. Mortgage products, housing market dynamics and federal housing programs are very confusing. For those having difficulty determining their home borrowing health, sites like MortgageReport.com are free and easy-to-use, and they help homeowners see where they stand and explore options.

"Recent statistics estimate that more than 12 percent of Americans are behind on their mortgages or already in foreclosure. And as the initial sub-prime crises comes to an end, we're seeing an increasingly large number of prime borrowers struggle as unemployment rates rise," said Kevin Walker, president and CEO of MortgageReport.com. "If you don't know where you stand with your current mortgage situation it's time to find out. Find a resource - a friend, a relative, a website or other information source that can help you cut through the clutter and determine your options."

Kevin Walker is available for interview.


About MortgageReport.com

MortgageReport.com helps homeowners understand their own unique mortgage financing opportunities in the midst of today's turbulent economic climate. As the U.S. housing crisis continues, millions of American homeowners are being inundated with information and offers about re-financing, loan modification and foreclosure relief regardless of their actual financial picture. Many are also confused about potential eligibility for new programs under the Obama Administration's housing and economic stimulus plans. MortgageReport.com helps homeowners cut through the clutter with actionable mortgage options tailored to their individual financial situation. MortgageReport.com is a sister company of SimpleTuition, Inc., the leading online resource for student loan comparison. For more information please visit MortgageReport.com.