With loan modifications dating back to the housing crisis set to expire this year, hundreds of thousands of homeowners across the U.S. will face higher mortgage payments.
About 900,000 borrowers benefited from the federal Home Affordable Modification Program, which reduced interest rates to as low as 2 percent. But after five years the program will begin to expire in September, according to the Palm Beach Post.
Monthly payments could increase by as much as $1,168 in Florida, with interest rates increasing at a pace of 1 percent per year until they reach their original level.
“We’re trying to raise awareness that interest rates are going to go up for these homeowners and while they are incremental increases, they can really add up,” Christy Romero, special inspector general for TARP, said. “Unfortunately there are still many homeowners not yet back on solid footing financially.” [PBP] – Christopher Cameron