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 HUD.gov U.S. Department of Housing and Urban Development HopeNow.com Support and Guidance for Homeowners |
Case Study #5House Value: $350,000 Total Mortgage Balance: $403,000 Payment Status: 11 months behind Current Total Mortgage Payment: $3,931 interest-only, including taxes and insurance Loan Type: 2 year fixed at 10.875% Hardship: The client purchased the home as an investment property, with no money down. Her goal was to refinance the loan in a few years, when some equity had been established in the house. When the house value dropped below the mortgage amount, she was unable to refinance and the interest rate her loan adjusted to over 10%. Her renters missed two months of rent payments, which caused her to start falling behind on the mortgage payments. She had no savings account to fall back on. Lender's Proposal: 2 year ARM at 3.875% New Payment: $1,550 P.I.T.I.* Total Monthly Savings: $2,451 Time from submission to acceptance: 26 days * Principal, Interest, Property Taxes and Homeowner's Insurance |
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