To: President Donald Trump, The Virginia State House, The Virginia State Senate, Governor Ralph Northam, The United States House of Representatives, and The United States Senate
Responsible mortgage payers need help
Responsible mortgage payers need help.
Middle-class earners with 2nd mortgages not tied to Freddie/Fannie are drowning in underwater mortgages and no affordable/realistic refinancing options. When interest rates start to rise, look for a new wave of foreclosures from those currently stuck in variable-rate jumbo Home Equity Line of Credit loans.
Middle-class earners with 2nd mortgages not tied to Freddie/Fannie are drowning in underwater mortgages and no affordable/realistic refinancing options. When interest rates start to rise, look for a new wave of foreclosures from those currently stuck in variable-rate jumbo Home Equity Line of Credit loans.
Why is this important?
Where is help for responsible homeowners whose underwater mortgages are not through Freddie/Fannie? We need refinancing options that:
A) don’t cost a fortune to obtain,
B) include 2nd mortgages (especially when held by a different lender than the primary mortgage lender),
C) include “Jumbo” loans,
D) and last, but not least–waive PMI requirements for homeowners who had previously gotten out from under PMI by paying down their mortgages before the housing collapse. PMI can cost hundreds of dollars each month, putting what could otherwise be an affordable mortgage payment out of reach.
Personal history…
We maxed out a Home Equity Line of Credit (HELOC/2nd mortgage) to pay for autism treatments for our son (not covered by medical insurance or the school system - that's another issue). Then came divorce during the housing valuation/market collapse, causing the Judge to make us tenants-in-common in 2009. The children and I remained in the home, I have made all mortgage payments since divorcing, never been late with either lender, and have zero debt other than the home (pay my credit card bills in full each month). I am financially responsible.
The two mortgages together (through separate lenders – Credit Union & local bank) put me in the category of needing a “jumbo” loan. The HELOC/2nd is extremely worrisome, since it makes up about 85% of the total debt, and is variable rate. When interest rates eventually start climbing, I will not be able to afford the HELOC payments and have been trying to head off this scenario by refinancing the two mortgages into a single loan that would give me a stable/affordable monthly payment. But consolidating the two mortgages into a fixed-rate jumbo mortgage with no PMI would require that I bring significant money to the table ($75K - $90K, depending on the details). Right.
So, my young teenage children and I sit with this sword of Damocles hanging, wondering how long we will be able to stay in the home, the home they have been in since birth.
A) don’t cost a fortune to obtain,
B) include 2nd mortgages (especially when held by a different lender than the primary mortgage lender),
C) include “Jumbo” loans,
D) and last, but not least–waive PMI requirements for homeowners who had previously gotten out from under PMI by paying down their mortgages before the housing collapse. PMI can cost hundreds of dollars each month, putting what could otherwise be an affordable mortgage payment out of reach.
Personal history…
We maxed out a Home Equity Line of Credit (HELOC/2nd mortgage) to pay for autism treatments for our son (not covered by medical insurance or the school system - that's another issue). Then came divorce during the housing valuation/market collapse, causing the Judge to make us tenants-in-common in 2009. The children and I remained in the home, I have made all mortgage payments since divorcing, never been late with either lender, and have zero debt other than the home (pay my credit card bills in full each month). I am financially responsible.
The two mortgages together (through separate lenders – Credit Union & local bank) put me in the category of needing a “jumbo” loan. The HELOC/2nd is extremely worrisome, since it makes up about 85% of the total debt, and is variable rate. When interest rates eventually start climbing, I will not be able to afford the HELOC payments and have been trying to head off this scenario by refinancing the two mortgages into a single loan that would give me a stable/affordable monthly payment. But consolidating the two mortgages into a fixed-rate jumbo mortgage with no PMI would require that I bring significant money to the table ($75K - $90K, depending on the details). Right.
So, my young teenage children and I sit with this sword of Damocles hanging, wondering how long we will be able to stay in the home, the home they have been in since birth.