Financing in 92867>Question Details

Cindy, Home Owner in 92867

We owe more than our house is worth and would like to get a lower interest rate to lower monthly payments. Excellent credit rating, no missed payments

Asked by Cindy, 92867 Sat Nov 13, 2010

Credit union is mortgageholder. They've offered to lower interest rate 1/2 percent, charging $1,000 for this service. We've been in our home eight years, have no intention of moving and aren't looking to reduce the amount owed, just monthly payment. Since we have no equity, is this the best offer we should expect or are there other options?

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Hi Cindy!

Don't have much information on your current situation but I would like to throw out a possible solution.

Why don't you ask your current lender if your loan is owned by Fannie Mae? If it is, you may qualify for refinancing under the special program that is part of the National Stimulous package. Go to for the basics of the program. Your home mortgage must be owned by Fannie Mae and there are certain other guidelines. But, it is definitely worth a shot! Current interest rates are so nice and low right now! There may be other options out there but this is the only one I can think of at this time.

If this doesn't work and you can find no other options, I would advise you to hunker down and be patient. Prices are coming up but slowly. Since you seem to love your current home and don't want to move ... you might just have to stay put for awhile and consider your mortgage as the price of a happy home. Things will eventually change.

Good luck!

Marlene Prescott
Prudential CA Realty
714 283-6643
CA DRE# 00840097.
1 vote Thank Flag Link Sat Nov 13, 2010
Hi Cindy, The market has gone up quite a bit in price since your original post and you may no longer be under, please contact me below and I can put you in touch with a great lender that can discuss your situation in detail and make recommendations for you. My contact info is:

Larry Webb, Ph.D., MBA
Broker Associate/Agent – REALTOR®
(714) 222-1465
Century 21 Award - Fine Homes & Estates
Orange County, California (Serrano Heights Expert)
Video Biography:
See my professional recommendations on
CalBRE Real Estate Broker’s License: 01413405
0 votes Thank Flag Link Thu Mar 27, 2014
I was just looking through old post and I noticed yours. If you were not able to refinance at the time of the post, I can certainly help you out now. You can call me at 408-352-5147 or email me at You can check us out at I will look at your situation and present you with some options.

Alex Greer
NMLS #1056079
0 votes Thank Flag Link Thu Aug 15, 2013
We can refinance you as long as you haven't missed any payments. Gieve us a call, Just funded one 3.75% which was a no cost streamline refinance. Rate was a little higher than par to pay closing costs.

Sheryl Arndt, Broker
DRE# 01140252
NMLS# 297251
0 votes Thank Flag Link Sat Sep 8, 2012

I just ran across your problem. I'm sure you've already refinanced under HARP 2.0 - It;s a governement program for folks just like you. The program came out the 3rd week in March 2012. It expires December 31st, 2012.

I have a loan funding tomorrow at 4.125% and my clients house is "underwater". If you've kept current on your payments and your rate is stil above 4.5% and you plan on being in your home for a while - please give me a call. I can save you money.

Castle & Cooke is a direct lender with our own in house under writting team.

I'm always available 24/7 on my cell - (949) 212-4578

Best regards,

Grant Fawcett
Mortgage Banker
Cstle & Cooke Mortgage
Cell: (949) 212-4578
0 votes Thank Flag Link Wed Jun 6, 2012
Hi Cindy:

If the 1/2% isn't low enough for you, you could propose a more reduced rate to your credit union. See if they have a loss mitigation department and send in a formal request.

I also think it's important to look at all your choices. Since your home is owner-occupied, please take the time to review the Home Affordable Refinance & Home Affordable Modification options at You actually don't have to miss a payment to be eligible for these programs. Since you haven't missed a payment, I would check first to see if you are eligible for the Refinance option. See Now, if you aren't eligible for the refi option, you maybe eligible for a modification. This does require a hardship but keep in mind that if you have loss of income directly from a job, increased medical bills or anything substantial that reduces your net income, then you have a hardship and could potentially be eligible for a modification. I have personal experience in handling modifications, so please feel free to contact me with questions.

It's fiscally responsible of you to at least try to lower payments in this day and age. I wish you the best in getting it handled & if the government options seem to complicated, take the reduced rate offered by your credit union!

0 votes Thank Flag Link Wed Dec 8, 2010

Frequently Credit Unions hold the Note for the benefit of depositer(s) within the Credit Union. If this is the case, you would need to negotiate through the credit Union to see what your best alternatives would be. We provide a Free Total Cost Analysis (TCA) to see if their offer is in your best interest. The TCA is a spread sheet that lays out all the details for you and then shows you what a 5 Year, 10 Year and 15 year Analysis would look like. As others have suggested, you can also check the Freddie Mac or Fannie Mae websites to see if they own your loan and then there are other options as well although since the Credit Union has made you this offer, my first scenario cited above is most likely.

Good Luck
0 votes Thank Flag Link Wed Nov 17, 2010
Wow! Cindy, assuming your monthly payment comes down enough to offset the $1,000 cost your credit union wants I think this is an incredibly generous offer on their part. There is really only one option for homeowners in your situation and Marlene Prescott gave you the link to the information below. If your loan is owned by Fannie Mae or Freddie Mac then you might be able to refinance to current market rates if your loan doesn't exceed the home's value by more than 125% I've found only about 50% of my client's loans are owned by either Fannie or Freddie and even then many of the CA clients are well outside the 125% range and can't use the program anyway.

Check your property address via the lookup link on Fannie and Freddie's website and if you're not in their database I'd take the credit unions offer and feel very good about it.

If you have any other specific questions post back.
0 votes Thank Flag Link Sun Nov 14, 2010
Hi Cindy, you are not alone is thousand of home owners that are experience the same situation, but I can tell you that are so many companies that request money from you to help you out. Believe that they can’t do more than you can do. Call your Mortgage Banker they will be the ones can give you an idea about lowering your principal or your rates.
The Bank needs an Appraise Value of your home if the value is not there is going to be difficult for anyone to give you a modification. If the Bank can’t approve your modification, you should talk to a CDPE, (Certified Distressed Property Expert) to see other options. Good Luck to you.
Web Reference:
0 votes Thank Flag Link Sun Nov 14, 2010
I would compare the rate they are offering to what market rates are at the moment. If they are really far apart and you do indeed owe much more that your home is worth, you may be able to negotiate a little more with them. It all depends on what they feel their rist is on having you default of the note. But as another realtor already mentioned, since you love your home so much, if you are less than 10% upside down, take the deal they are offering and wait for the market to come back and we all know it will.
0 votes Thank Flag Link Sun Nov 14, 2010
The property value going down is not hardship!!

Unless you are in true hardship never default on payments.

Research your options.

Web Reference:
0 votes Thank Flag Link Sat Nov 13, 2010
I do not think the bank will budge on their offer until the bank feels that you're at a serious risk of default.

Right now you're making payments, to them there's no risk of default, why would they go & offer you major interest rate reduction?

The goal of the HAMP program (Making Homes Affordable Program) as stated in their mission statement that can be found online is to Reduce a homeowner's mortgage payment be $300-500 for a short term period of 3-5yrs. When the HAMP program started around March 2009, they were supposed to help 7-9,000,000 underwater & struggling homeowners. By Nov. 2009, Bank of America had only permanently modified 98 loans with over a million owners at a 60 day default.

Banks are not so interested in doing loan modifications which is why most people just get the run around, constantly being asked to submit another paystub or a bank statement, or the bank loses information & sticks people in trial loan modifications which aren't permanent solutions & then the bank denies the application. Which is why there are so many short sales & REOs on the market.

You can counter the bank. What the bank is looking at is this: Take your monthly gross income X 38% then subtract monthly property tax, homeowners' insurance any hoa fees & that's the payment you're trying to reach (this figure represents your HTI-Housing To Income ratio), figure out at what interest rate would cause you to get to that payment, provide proof that that is all you can afford and go from there. Keep in mind it's not just the interest rate that you can argue be reduced, you can couple this with an extension of the loan term, amortize the payment over 40yrs instead of 30, for example.

Explain your hardship & how your income has changed since you initially qualified & were approved for your original loan.

I'd be happy to forward you an itemization of expenses form you can use to help outline what your monthly expenses are, this is something you can do on your own, I wouldn't be privy to your personal finances.
Shoot me an email directly if you like, I won't check back on this same Trulia posting for responses.
562-430-3053 cell
0 votes Thank Flag Link Sat Nov 13, 2010
Without knowing more details it would not be possible to tell you if the deal is good!!

Pls fee free to contact me for the best rates and services.

NMLS - 327086
0 votes Thank Flag Link Sat Nov 13, 2010
You need to look at the fine print. Do the math and if it makes scene I would jump on it.
0 votes Thank Flag Link Sat Nov 13, 2010
FHA has an underwater program, check with a local lender to see if you qualify.

Good Luck!
Chris Blasicw
0 votes Thank Flag Link Sat Nov 13, 2010
Cindy -

How is the value compared to the mortgage balance? Is the home worth 60%, 70%, 80%, 90% of the mortgage balance, etc.? Depending upon this answer, the offer you have may be the best you can do.


Thom Colby
Broker / Owner & Certified HAFA Specialist
Thom Colby Properties
Newport Beach, CA
Moving Lives Forward (TM)
We NEVER DOUBLE-END Transactions in our Brokerage. There is NO benefit to the Seller or Buyer and only benefits the Agent. Also, NEVER use your RE Agent / Broker as your Lender or vice versa. Also, be careful when using Real Estate Broker-owned Escrow and Title Companies - they can be loads of trouble.
888-391-5245 Direct Cell
DRE# 01398570
0 votes Thank Flag Link Sat Nov 13, 2010
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