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Cheaper Easier Mortgages

By: Riley McCarthy. Cheaper Easier Mortgages. Issue. 2 million home owners are affected by foreclosure and balloon mortgages. Balloon and Foreclosure. A balloon payment is when you start off with low monthly payments and end with high monthly payments

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Cheaper Easier Mortgages

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  1. By: Riley McCarthy Cheaper Easier Mortgages

  2. Issue • 2 million home owners are affected by foreclosure and balloon mortgages

  3. Balloon and Foreclosure • A balloon payment is when you start off with low monthly payments and end with high monthly payments • Foreclosure is when you can not make your mortgage payments and the bank takes your home

  4. Why it matters? • Balloon mortgages are risky because the full payment comes due quickly; 5 to 7 years instead of 30 years • You will not build equity because you are just paying interest • Foreclosures affect everyone; the economy, price of homes in the neighborhood, and the banks

  5. Personal connection • My grandmother had a mortgage with balloon payments which no one in the family knew about • She used a lot of her savings trying to pay the increasing payments • The bank eventually had to foreclose on her property • She lives with us. She brought her cats.

  6. How to fix it • 97TH GENERAL ASSEMBLY State of Illinois 2011 and 2012 SB3522 • This bill will limit the imposition of prepayment penalties in connection with high risk loans. It will also limit the size of balloon payments and imposition of late fees • In the poor economy it will help keep Americans in their homes avoiding foreclosure

  7. Who can help? • Your senators • Richard Durbin: 711 HART SENATE OFFICE BUILDING WASHINGTON DC 20510 Phone: (202) 224-2152 • Mark Kirk: 524 HART SENATE OFFICE BUILDING WASHINGTON DC 20510 Phone: (202) 224-2854 • Your local representative

  8. Finale • Balloon payments need to lowered • Foreclosure needs to stop • Legislation needs to be passed • Contact your senators or local representative

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