Home Loans Cause Holiday Stress for West Virginia Family

Problems with sub-prime loans and home refinancing have created a lot of financial problems for many American families in the last few years. Our family is a victim. My fiancé is on disability, and I am having a hard enough time finding a decent-paying job here in West Virginia.

When we purchased our mobile home in Reedsville, we qualified for a home loan that would enable us to refinance the loan after two years for a new rate and time frame. Our original payment on this house was $325 a month and on our limited income of about $1200 per month combined, that was barely affordable.

As most people in our situation are relatively aware of with such a low income, we had to borrow money from one high rate lender to catch up the bills that we were letting fall behind. This of course meant that now we had multiple monthly loan payments due every month. With the finding of the right loan company, the benefits are enormous with the people. The interested people should check it out and the loan amount is deposited in the bank account. It increases the confidence of the applicant in meeting of the desired requirements and specifications. 

When our two-year mark came around on our mortgage and they sent us that friendly letter that they would love to offer us an easy refinance mortgage on our home, we jumped at the opportunity. We thought we were so much better off now because we only had the one loan payment to make each month.

However, there was a catch that we were not aware of ahead of time. You see, our interest rate at first was just about 6% on our home. Much to our surprise, when we got our first monthly statement on our refinanced mortgage bill our new interest rate was 14%! That was a huge increase in our monthly payment, almost as much as it was with the three separate loans.

This financial crunch really starts to be noticeable around Christmas time this year. With a four year old daughter and our newborn son due at any day, it’s hard to listen to all the stories about what her friends are getting for Christmas and what she wants for herself.

It is hard to explain to your little girl that we just do not have the money to give her the Christmas that we really wish we could provide for her. This year is, of course, especially hard now that we even have less money for presents with all the things we need for the new coming baby. As a parent, this is the worst emotional pain we have felt in our lives to see that look in her eyes when the tree does not have so many of the big things she wished for.

I wonder if the lending companies have any heart or how they manage to sleep at night when then think about people like us that suffer with these problems every day while making them richer all along!