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How to address the Foreclosure Crisis An important step in resolving the foreclosure catastrophe is to provide help to mortgagees in creating the monthly loan obligations; this assistance should be in place prior to the first loan payment is expected. One solution in providing assistance, which might not need any additional governmental funds to be spent, would be a compulsory mortgage equity accelerator application for every new loan composed. A mortgage equity improvement program makes it possible for a thirty year mortgage loan to be repaid in about twenty-five decades. The complete monthly payment is not decreased, but mortgagees have two equal automatic withdrawals made from their bank account on established dates. Both of these withdrawals are united to create the monthly loan payment. Regular vs Biweekly Payments with Equity Accelerator Here's a good illustration of how it operates on house that lists for $1 million courtesy of PayMap. The house lists for: Listing Cost $1,000,000 30 year repair rate loan of 6 percent 10 percent or $100,000 down payment 1. Normal Monthly Payment = $5,688.61 vs. two automatic payments of $2,844.31 monthly. Simplified Budgeting and overall payment has not changed. 2. Normally payoff loan in 30 years, but do it in 24 decades, 4 months rather. 3. Your equity in ten years generally is 137,014, but using an equity accelerator program it's $212,519. 4. Total Interest Savings with equity accelerator is $255,523. Some lenders are ready to divide the monthly loan payment into four refunds, basically making weekly banking account withdrawals. This is my personal story of how an equity enhancement program works to get a thirty-year fixed mortgage. The FHA loan for the home is currently 184,900.00, thirty year fixed rate of 5.25 percent. The monthly p.. .