Bob Pace
Silver Spring,#2Consumer Suggestion
Wed, December 10, 2008
There is only so much "hope for homeowners". There is no way that your loan principal and interest was ever at any point 650 dollars per month. An ARM loan can increase your interest rate but not that much. It would be mathematically impossible to get a 200K loan at 650 dollars per month...unless you know of someone that loans money w/ basically no interest. Also, what about your taxes and insurance? I'm not trying to make your situation anymore difficult than I'm sure it already is. I'm just trying to break this down to help you understand just how far off your request is from being realistic. I would imagine the company could work with you to get a more fair fixed interest rate, but the payment would never be short of an estimated 1200.00 per month w/ taxes and insurance, on a 200K loan. The value of your home has nothing to do with how much you should have to pay per month. The bank simply loans you the amount of money that you are willing to pay for the home. Who is supposed to eat the negative equity? On the flip side, if you borrow 200K for the home and in ten years its worth 400K, are you going to be calling the bank offering to pay a 400K mortgage?