Eliminate Adjustable loan
| Listing Information | |||
|---|---|---|---|
| Amount: | $25,000.00 | Status: | Loan created |
| Grade: | AA | DTI: | 37% |
| Lender Rate: | 12% | Borrower: | GrandPaPa |
| Finished | State: | GA | |
| Funded: | 100% | Group: | Effective Financial Solutions |
| Loan Information | |||||
|---|---|---|---|---|---|
| Loan Status: | Current | Origination Date: | 2007-11-07 | EricsCC ROI: | 9% |
| Status History | |
|---|---|
| Nov 07, 2007 | Current |
|
Purpose of loan: I'm re-listing myrequest for a Prosper loan. It became apparent that our first attempt at a Prosper loan application was not presented clearly enough. Most of the problem revolved around including the fact that my wife also helps with our bills and that she has accounts of her own. We hope that this disclosure will fill in the gaps of our inexperience. For those that participated in our first attempt, we thank you very much and hope you will be able to participate again. Purpose of this loan To pay down our existing adjustable rate mortgage so we can refinance to a fixed rate. We will also pay off 4 small balance credit items with inordinately large payments relative to the balances. But mostly, this loan is about the fact that our family has better uses for our income than paying a high interest rate on a mortgage that is about to adjust to a substantially higher rate in about 6 months. My financial situation: The mortgage on our home has two problems. The balance we owe is more than we are able to refinance. Our rate is an adjustable rate that will increase 3% (an increase of $344 per month) in about 6 months. This loan is to reduce the loan balance on our home mortgage so that we can refinance and get rid of the adjustable rate mortgage before the rate increases. We are already approved for our home refinance pending this loan. My current mortgage is at an 8.7% adjustable with a payment of $1,212.68 PI. Our new mortgage will be at a 30 year fixed rate of 7.25% with a principle and interest payment of $947.91 per month. That is a net improvement of $264.77 per month in our mortgage payment. We were introduced to this site by our mortgage lender (who is a Prosper Lender and my Prosper group leader at Effective Financial Solutions). He has seen all our financial documentation and has already fully underwritten and approved us for our new mortgage pending these funds from Prosper. We will also be paying off four small accounts totaling $2,304 thus eliminating another $246 of our disclosed monthly loan payments. Because we are reducing our home payment by $264.77 and our debt by $246, we are increasing our overall payments by $355.86, (866.63 - $510.77). This will not create a problem for us and will benefit us greatly by eliminating our adjustable rate before it increases. The adjustable rate change will cost us that much anyway and would potentially go even higher. This loan will be paid off in three years and will leave us in an excellent position. As you can see, my credit is excellent because we always make our payments and we always make them on time. We also do not use too much credit. We will treat this new loan with the same respect we have all our debts. What is not included here (because Prosper doesn't include spousal income etc.) is my wife and her contribution to our financial well being. Her income of $2,537 per month is an important part in our family?s success. With my income of $6,960 per month, we have a combined income of $9,317 per month. With our new fixed rate home payment of $1,171.80 PITIM, a prosper loan payment of $866.63 PI and our other debt payments of $754 PI and my wife?s personal accounts of $738 PI (for a total of $3,530.43 monthly), we absolutely have the ability to repay all our obligations and expenses. Thank you for considering our request. Monthly income: $ 6,960 Monthly expenses: $ Housing: See above Insurance: $ 450(car) Car expenses: $ 200 Utilities: $ 91 Phone, cable, internet: $ 68 Food, entertainment: $ 200 Clothing, household expenses $ 150 Credit cards and other loans: $ 1000(see above) Other expenses: $ 350 (on previous Prosper Listing include vacation timeshare) |
| Borrower's Other Listings | |||||
|---|---|---|---|---|---|
| 210587 | Eliminate an adjustable rate | AA | $25,000 @ 15% | Oct 05, 2007 | Withdrawn |
|
Discussion For This Listing
|
||
|---|---|---|
|
No Comments Found For This Listing
|