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Wednesday, March 5, 2014 - 11:33am
Mortgage rates that were reduced under the government's Home Affordable Modification Program will increase over the next few years. A federal watchdog warns that could cause some borrowers to default on their loans. The increases will impact about 783-thousand homeowners who got mortgages as low as two-percent under the HAMP program.
Modifications were fixed for five years and will now climb to five-point-four-percent. The increase will have the average homeowner paying almost 200-dollars more a month. Borrowers in expensive coastal markets could see their mortgage payments climb by as much as 17-hundred dollars.