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Featured Case Results - January 2011
Before: Borrower was $6,211.75 (5 months) past due. Interest rate was 5.75% and monthly payment was $1,202.35 PITI.
After: Borrower's new payment is $687.83 PITI ($514.52 savings). New interest rate is fixed at 2.00% for the first 5 years, 3.00% the 6th year, 4.00% the 7th year, and 4.25% for the remaining life of the loan.
Before: Borrowers were $11,432.14 past due and they had a 6.25% interest rate loan with a monthly payment of $2,396.02.
After: Borrower's new payment is $1,584.23 PITI ($811.79 savings). Their new interest rate is fixed at 2.00% for the first 5 years, 3.00% the 6th year, 4.00% the 7th year, and 4.50% for the remaining life of the loan.
Before: Borrower was 7 months past due. She had an adjustable rate mortgage with a monthly payment of $2,470 PITI and an 8.25% interest rate.
Trial: Three month trial plan with payments of $1,475.66, saving $991.47 per month (more than 50%).
Final: Borrower's new payment is $1,475.57 PITI ($994.43 savings). Loan was converted to a fixed rate at 2% for the first 5 years, 3% the 6th year, 4% the 7th year and 4.375% the 8th year and for the life of the loan.
Before: Previous interest rate 7.25%, PITI payments $1,571.56, saving $925.07
Trial: Three month trial plan with payments of $1,571.56, saving $925.07
After: Final modification to payments of $936.36 PITI for 5 years at 2% interest, 6th year 3% interest, 7th year 4% interest, 8-40th year 5% fixed interest. They also deferred principal of $129,700.00. This will be paid after the 40 years of the loan or when the house is sold or refinanced. In this case chase employed all three steps on the making home Affordable plan 1. Lower interest rate; 2. Extend the mortgage terms to 40 years; 3. Defer principal balance because the home value has dropped. New monthly payment is $635.20 less than the trial plan and $1,560.27 savings per month from the original payments. Borrower is ecstatic. Super!
Before: Borrower was 3 months behind owing $8,946.21 with an adjustable interest rate of 8.875% and monthly PITI payments of $2,988.07.
After: Final modification with new monthly PITI payment of $1,457.43 fixed 2.750% interest rate. saving $1,530.64 per month for the life of the loan. WOW!