Net Present Value Explained In New Article On

SAN DIEGO, July 26, 2013 /PRNewswire-iReach/ -- is a borrower advice website that provides detailed insights into the mortgage industry in a fun and entertaining way. The team at is devoted to help empower both first time and experienced homeowners with valuable resources, first-class knowledge and connections to top-rated industry professionals and has the mission of helping consumers and borrowers to obtain the latest information on mortgage lending trends, the real estate market and the U.S. financial landscape in order to help them obtain a home loan that they will love. A recently posted article continues to offer information that can help borrowers, by explaining what net present value is and why it is important for those who are seeking a loan modification.

The article explains: "In the past few years, hundreds of thousands of homeowners have turned to home mortgage modification to help them deal with the twin demons of soaring mortgage payments and spiraling property values. The process seems relatively straightforward: Fill out a few forms, provide a few financial documents and the bank does the rest. The problem arises when you get the lender's decision, typically a letter with the terms of a modification or an outright denial. In either case, there's no real explanation of how the lender reached their decision and many homeowners are left wondering if they've been given the "whole story."

So how do mortgage borrowers know if they are being given fair treatment when it comes to applying for mortgage modifications? This is where understanding NPV (net present value) comes in. The Loan Love article says:

"When a lender considers mortgage modification, they begin by determining the net present value, or NPV, of the mortgage and property. So what's NPV? In brief, NPV helps lenders determine whether it's in their best interests to foreclose on a mortgage or to modify that mortgage to help the current homeowner remain in the home. NPV is determined by a ridiculously complex formula which relies in part on looking at what a dollar is worth today and then comparing that with what a dollar is projected to be worth in the future. Once a lender determines the NPV, it decides which option to offer the homeowner. It doesn't take a mind reader to figure out that the option the lender offers is the one that's going to be most profitable to them. So what does this mean to consumers? It means that to be sure you're really being offered the best option, you need to have an independent analysis done that uses the same NPV formula. One analysis proving especially popular with consumers is the REST Report."

The REST report is a third party analysis tool that can help borrowers to see exactly what their NPV is, as well as view ALL the modification options that they qualify for given their circumstances. The article goes on to say: "The REST Report was developed to help consumers, and it does a lot more than just calculate NPV. For the first time, the REST Report has enabled homeowners to fight back against incompetent lenders and expedite the loan modification process. For instance: Are you eligible for a lower interest rate and monthly payment? Are you eligible to have your principal decreased? Maybe a short sale really is your best option? The REST Report will tell you."

But does the REST Report reall work? Not only does it work in helping homeowners understand their options in home modification, but it also helps consumers take back control over their own lives, their own finances and their own futures. For more information on net present value and the benefits of the REST Report, please visit for the full article.  

Media Contact: Kevin Blue,, 949-292-8401,

News distributed by PR Newswire iReach:


Related Links


Business, Money


Real Estate, Residential Real Estate, New Products & Services

Need Help