Lower Your Monthly Mortgage Payments Without Refinancing – 8 Recent Mortgage Rate Reductions

See how much you can lower your monthly mortgage payments without refinancing. Here are eight cases of rate reduction that qualify under the TARP Mortgage Reduction Program. I have selected eight cases with various scenarios and locations across the US that qualify for a loan modification. These eight cases include homes that are upside down, homes with equity, home owners that are current on payments, those that are behind, investment properties that are negative cash flow, different regions of the US and varying property values. Yes, you can lower your payment, even if your home is upside down or payments are current.

8 Cases That Qualify For A Lower Mortgage Payment:

  • Mortgage Reduction # 1: This is a property in Santa Rosa California. Purchase price $ 750k, current market value $ 380k, 1st (ASC) balance $ 602k, 6.5% adjustable, monthly payment $ 3256, 150 days late. 2nd (Chase) balance $ 92k, 8.5% fixed, monthly payment $ 720, 150 days late. They qualified for a modification to 3.5% with a lower monthly mortgage payment of $ 1755 for 10 yrs on the 1st and 3.5% with a lower payment of $ 268 for 10 yrs on the 2nd, a combined savings of $ 1951 a month.
  • Mortgage Reduction # 2: This is a property in Missoula Montana. Purchase price $ 167k, current market value $ 197k, 1st (B of A) balance $ 147k, 6% fixed, monthly payment $ 921, 0 days late. No 2nd. This home owner qualified for a modification to 4.2% with a lower payment of $ 513 for 5 yrs, a savings of $ 407 a month.
  • Mortgage Reduction # 3: This is a property in Fulerton California. Purchase price $ 350k, current market value $ 330k, 1st (Met Life Home Loan) balance $ 362k, 6.87% fixed, monthly payment $ 2552, 0 days late. 2nd (First Horizon) balance $ 89k, 8.75% fixed, monthly payment $ 719, 0 days late. They qualified for a modification to 3.87% with a lower monthly mortgage payment of $ 1167 for 10 yrs on the 1st and 3.87% with a lower payment of $ 288 for 10 years on the 2nd for a combined savings of $ 1814 a month. Additionally a balloon payment was coming due that is put off for 10 yrs.
  • Mortgage Reduction # 4: This is a property in Lawrenceville Georgia. (First of two properties by the same owner. This one is the primary residence and the next will be the income property) Purchase price $ 252k, current market value $ 285k. 1st (B of A) balance $ 383k, 6.75% fixed, monthly payment $ 1620, 0 days late. 2nd (City Group) balance $ 95k, 8.25% fixed, monthly payment $ 514, 0 days late. This couple qualified for a modification to 3.75% with a lower payment of $ 1197 for 10 yrs on the 1st and 3.75% with a lower payment of $ 297 for 10 yrs for a combined savings of $ 640 a month.
  • Mortgage Reduction # 5: This is the investment property from the owner above located in Snellville Georgia. Purchase price $ 163k, current market value $ 165k, 1st (ASC) balance $ 111k, 8.25% fixed, monthly payment $ 1166, 0 days late. 2nd (First Horizon) balance $ 47k, 14.25% fixed, monthly payment $ 578, 0 days late. This couple qualified for a modification to 5.25% with a lower monthly payment of $ 485 for 10 yrs on the 1st and 5.25% with a lower mortgage payment of $ 205 for 10 yrs on the 2nd for a combined savings of $ 1052 a month. This rate reduction turned this investment property from a negative cash flow to positive cash flow. Both properties combined total a savings of $ 1692 a month.
  • Mortgage Reduction # 6: This is a property in Manassas Virginia. Purchase price $ 130k, current market value $ 262k, 1st (B of A) balance $ 276k, 5.5% fixed, monthly payment $ 1659, 30 days late. No 2nd. This home owner qualified for a modification to 3.7% with a lower mortgage payment of $ 852 for 5 yrs on their 1st. This is a savings of $ 807 a month.
  • Mortgage Reduction # 7: This is an investment property in Clearwater Florida currently un-rentable. Purchase price $ 98k, current market value $ 60k, 1st (PHH Mortgage Services) balance $ 91k, 8.895% fixed, monthly payment $ 742, 0 days late. This owner qualified for a modification to 5.895% with a lower monthly mortgage payment of $ 447 for 10 yrs. This is a savings of $ 295 a month.
  • Mortgage Reduction # 8: This is a property in Rancho Palos Verdes California. Purchase price $ 1.2mil, current market value $ 1.5mil, 1st (B of A) balance $ 1mil, 6.25% fixed, monthly payment $ 6500, 210 days late. 2nd (B of A) balance $ 125k, 6.5% fixed, monthly payment $ 1000, 30 days late. This home owner qualified for a rate reduction to 4.45% and a lower payment of $ 3708 for 5 yrs on the first and 4.45% with a lower monthly mortgage payment of $ 463 for 5 years on the second for a combined monthly savings of $ 3328.
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