Calculating Your Principal Reduction Savings
Calculating Your Principal Reduction Savings
| Example I | |
| Mortgage Amount | $450,000 |
| Amount Behind in Mortgage | $15,000 |
| House Value | $300,000 |
| Principal Reduction Program Refinance Amount | $285,000 (300,000 x 95%) |
| Debt Wiped Out
|
$180,000
|
| Example 2 | |
| 1st Mortgage Amount | $600,000 |
| 2nd Mortgage Amount | $250,000 |
| Total Debt | $850,000 |
| House Value | $400,000 |
| Principal Reduction Program Refinance Amount | $380,000 (400,000 x 95%) |
| Debt Wiped Out
|
$470,000 |
