Your Financial Bail Out


We applaud President Obama for standing up for the rights of consumers and the rights of homeowners. We believe he is going to be a consumer friendly President, and he is starting things off in the right direction, because we expect he is going to sign a new law that will help homeowners reduce their mortgage payoff balance, their monthly mortgage payments, and their interest rates.

This is a huge step in the right direction and this can be your financial bail out.

Once this law is passed, here is what you have to do to qualify:

  1. You have to own a home
  2. You have to have a mortgage on your home
  3. The present fair market value of your home has to be less than the balance you owe on your first mortgage

This is very simple, and it is best illustrated by an example:

  1. Let’s assume you bought your home 3 years ago for $200,000, and you obtained a $200,000 mortgage.
  2. Assume the home has depreciated in value and is now worth $150,000.

Assume you still owe close to $200,000 to pay off your mortgage in full.
In this example, your house is now worth $50,000 less than what you bought it for. It is also worth $50,000 less that what you owe the mortgage company.

It’s really very simple. If this new law passes, instead of owing $200,000 to the mortgage company, you will only owe the mortgage company $150,000. You instantly save $50,000.

What does this mean in terms of monthly payments to you? If you are paying 7.5% interest, your monthly mortgage payment on a 30 year $200,000 mortgage is $1398. If you reduce your mortgage to $150,000, all of a sudden your payments are automatically reduced to $1048. You have just saved $350 a month. That equals $4200 per year.

You also just saved $50,000, because you now only owe the mortgage company $150,000 instead of $200,000. But that’s not all.

If you pay that $200,000 mortgage for 30 years you pay a total of $503,343.

If you pay the $150,000 mortgage for 30 years you now pay a total of $377,575.

You would therefore save $125,768.

Thank you President Obama.

Let’s take this example one step further. You have a right to refinance that mortgage. You would probably have a good chance to refinance the mortgage if you continue making regular payments for one year.

Experts are saying that mortgage rates are going to go down to 4.5%. If you refinance the new $150,000 mortgage at 4.5% your monthly payments will now drop to $760.

Therefore, compared to your original mortgage payment, you now save $638 per month and $7656 per year.

When you pay a 4.5% mortgage on $150,000 for 30 years, you pay a total of $273,611. When you pay a 7.5% mortgage on a principal balance of $200,000 you pay a total of $503,343. If you can reduce your mortgage balance to $150,000 and refinance at 4.5% you just saved $229,732.

This demonstrates how powerful this expected new law really is.

This law is expected to pass sometime in January or February, 2009. Please speak to Seymour Wasserstrum to get the latest information.

Also, please inform your friends and family of this important new development. You could help save them a huge fortune, and they will be forever grateful.

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