How can I lower my interest rate on my mortgage?
by Mortgage Rates on Sunday, October 24th, 2010 | 6 Comments
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You CAN get a lower rate with a re fi …the trouble is finding a place to give you one …..
I’d suggest talking with Quicken , Dietech , and Bank of America …. or even local INDEPENDENT banks in your area …
Don’t grab the 1st deal; that you come across ..check out SEVERAL before you decide …..
Above all ; Do NOT go thru a “Mortgage Broker” as you’ll end up paying several Thousand $$$$ at closing for their service …. Just make sure that your lender is a Direct lender ……
Best of Luck to You …..
The FHA is swamped AND the budget year just ended last month. Try again until you get help or an official “no”.
Keep in mind that historically, 6.7% is a LOW rate. It is only in the context of the free money (which got us into this trouble) that it seems “high”. My first home I had to put 25% down AND I paid 10% interest.
And truly, what is really sad is that those of us that have remained current, and still owe more than we own, get NOTHING. Nada, zilch, zippo. As a matter of fact I get to pay more taxes because I had to go and take a second job to stay current, so taxes paid in go up. Yeah me! Punished, once again, for doing the right thing.
Check out the new laws, see if they help. Go to them/call them and insist on help with the FHA loan, not sure whether you qualify for Streamline. Stay on phone, don’t let them call you back, request to speak to some one NOW. Be polite and firm, explain you’ve been waiting so long already.
People who are a higher risk pay higher interest, because there is higher likelihood of default, and problems and these incur fees for lender. Sounds like that interest rate increase shouldn’t have been that much monthly.
Extra payments of principal can GREATLY reduce the interest you pay over life of loan, whether $20 or $200 extra a month as you’re mostly paying interest in first 5-10 years.
“It’s sad that the only people who benefit by lower rates are those with excellent credit and no past or present issues”
Why lower rates on people like you, who are greater risks? You think people who pay their bills on time should pay more?
Get out your mortgage contracts and read all the fine print and determine if the mortgage company has LEGALLY changed your interest rate. UNLESS you have an adjustable loan most loans have a set interest rate and then tack on penalties when the payments are late.
Have you made any other deals with the bank like them allowing you to make the regular payment and the 200.00 is to make up for the missed or overdue payments?
Again read your contract and then do not be afraid to QUESTION them concerning the increase. If you can not find your papers then fax or mail them a letter asking them to provide the section of your contract that allows them to change your interest rate under these circumstances.
Sad to say but lenders look at 120+ lates on mortgages as foreclosure. 6.7% is a great rate and you wont get much better. I do believe that people who are able to control their credit deserve the lower rates, sorry but true. Did you talk with your mortgage company during the period of time you were defaulting? They are willing to work with you more than ever now. They rather get some sort of money out of you than nothing and having to pay the legal fees to start foreclosure proceedings. They dont want your home they want money. Talk with the current lender more.