The Chicago Reporter took a look at some recently released mortgage data with an eye to how many successful refinances there were last year. In addition to concluding that people who most needed a refinance (those with crazy expensive loans) were also the least likely to get one, the Reporter also found that Chicago lead the nation in the total amount of high-cost loans for the fourth year in a row. High-cost loans are loans that are at least 3% above the U.S. Treasury standard.
The Reporter gives the following example of a family that is unable to refinance their high-cost loans (they have two):
The Brighton Park family has a documented income of $1,400 each month and pays $1,800 monthly on their $225,000 house.
Their situation, like so many others in their shoes, is hopeless, said Jeanne Sherman, the coalition’s homeownership coordinator. Each week, Sherman gets 55 calls from people who want to refinance because they are on the verge of foreclosure.
Here are the 10 metropolitan areas with the most high-cost loans:
10. St. Louis, MO
9. Miami, FL
8. Washington D.C.
7. New York, NY
6. Houston, TX
5. Atlanta, GA
4. Riverside/San Bernardino, CA
3. Phoenix, AZ
2. Los Angeles, CA
1. Chicago, IL