Lowest Interest Rates Home Loans

Learn how to lower your mortgage's interest rate without refinancing.Learn how to lower your mortgage's interest rate without refinancing.

If you do not want to refinance your mortgage, a loan modification might reduce your interest rate. However, for your lender to approve your modification, you will have to prove you are suffering financial hardship. Alternatively, you can tell your lender you are considering refinancing, preferably with another lender, and ask if they could lower your interest rate. Your lender might reduce your interest rate to keep your loan. However, this depends entirely on your lender. If you are struggling to pay your mortgage, a loan modification has a better chance of success.

Contact an approved housing counselor, and ask what choices you have. Housing counselors approved by the Department of Housing and Urban Development offer free advice on how to reduce your mortgage costs. They can even help you negotiate with your lender.

Call your lender and ask to speak to the loss mitigation department. This is the department that has the power to reduce a mortgage's interest rate. Explain you are going through a financial hardship and need a loan modification that reduces your mortgage's interest rate. Your lender will ask for documentation that proves your financial hardship and your ability to pay the modified loan.

Provide your lender with the necessary documentation. This will include bank statements, a hardship letter explaining why you are struggling with your mortgage and a family budget detailing your income and monthly expenses. Fill in and sign the forms, and send them back to your lender. If the loan modification is approved, your interest rate will drop.

Tips

  • Pay your mortgage regularly and on time. This increases your chances of receiving a loan modification. The U.S. government, through the Making Home Affordable program, provides incentives of up to $1, 500 to borrowers who get a loan modification without falling behind on payments.

Warnings

  • A loan modification is seen as a negative event on your credit report, which could affect your chances of getting a loan, a job or a rental in the future.
  • Be sure the loan modification reduces your interest rate; sometimes it reduces monthly payments by stretching your mortgage's term without dropping your interest rate.
  • Avoid companies that guarantee to drop your interest rate or ask for up-front payment for their services; they are probably scams.

Home Loan Crisis

2008-01-07 11:09:50 by Aspiekid

Could it be that if people understood basic math like interest rates on home loans, that the home loan mess that we have could have been prevented? I know that my husband and I marvelled at the loans out there and what people were doing with their finances. We are not surprised at the bad decisions that have been made. People did not do the math for themselves, trusted the bank and their computer to do the math, and now they are losing their homes. If only those people knew how to do their math, many of them would never have signed on the dotted line for such a bad loan. That is one of the many uses of math

Try for federal loans / grants / private

2008-03-26 05:40:40 by tinycalico

Scholarships. Do not take out a loan through a private company. The interest rates are too high, etc... There are numerous other problems with student loans from private student loan companies.
As a student nurse will your husband be able to get a job in a hospital / nursing home and get tutition paid for by them?

You might also like:

lowest fixed rate for home loan in …
lowest fixed rate for home loan in …
Low Interest Rate on a Home Loan: 60 …
Low Interest Rate on a Home Loan: 60 …

Calculator doesn't show the benefits  — Manawatu Standard
We then ran these through the Westpac bank mortgage calculator, assuming a 20 per cent deposit, annual joint income of just under $100,000 - the kind of salary a young professional couple might make - and a 30-year mortgage term.

Rising mortgage rates dilute affordability  — CBS News
At a 4.4 percent interest rate, the average for a 30-year fixed rate mortgage over the third quarter of the year, more than 70 percent of the country's homes remained affordable for a middle class family.

No Loan Again Naturally
TV Series Episode Video on Demand ()

Media Freeware Releases Home Mortgage Calculator to Help Borrowers Get ..  — SBWire
Media Freeware aims to put an end to the confusion by providing a free Home Mortgage Calculator that gives individuals a detailed breakdown of exactly what a loan means depending on the specific features of the very loan users are considering ..

Related posts: