Last month JPMorgan Chase announced a new mortgage program to help military members. This month Bank of America followed with its own program for mortgages it owns (Bank of America is still working to extend the programs to mortgages it services but does not own). Details about the program are:
a. Servicemembers who were eligible for a 6% interest rate cap on their home mortgage interest (the debt must have been acquired pre-service) will be eligible for a 4% interest rate for the duration of their active duty service and for 12 months thereafter.
b. Bank of America’s Military Loan Modification Program will assist military customers who are leaving active duty either domestically or abroad and who are struggling to afford their mortgage payments. The program will first reduce the principal owed to the bank to as much as 100% of the home’s current market value. If the principal reduction is not enough, Bank of America will reduce the interest rate and extend the life of the loan “as needed” to help customers achieve a more affordable mortgage payment.
c. Bank of America’s military-dedicated mortgage customer service unit, can be reached by calling 1-888-325-5357.