How do I get my bank to reduce the interest rate on my mortgage?

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What do I say when I call? My interest is 5.38%

  1. Reply
    January 31, 2011 at 8:51 am

    You would first need to have a valid financial hardship and be able to prove it. Lenders are not going to modify the terms of a mortgage because the borrower thinks the payments are too high.

    If you have a valid hardship that will end up causing you to lose your home, it is best to seek professional help. There are many oganizations that can help you for free. There are some very good ones also that will do a great job in handling everything for a fee.

  2. Reply
    January 31, 2011 at 9:36 am

    You would ask them for a loan modification, however, your loan is already really low, they can’t lower it much more then that. If you can’t afford this rate you will not be able to afford the new rate either, it will not be very far off,

  3. Reply
    January 31, 2011 at 10:20 am

    Are you sure the bank holds the mortgage and isn’t just the service agent for it? Most mortgages are sold in the secondary market and the bank to which the homeowners make their payments just service as a conduit to send the money to the proper people.

    The current average rate for a 30-year mortgage is 4.73% so refinancing may not save you much after you pay the closing costs. You could, however, let them believe that you are seriously considering refinancing with another bank.

    (I’m lucky. My mortgage is a five-year ARM and the first adjustment is next month. My interest rate is going from 4.75% to 2.875%.)

    I hope this helps.

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