Is there any way to modify existing 30 Yr fixed mortgage to lower rate?

Asked by Curious09, New York, NY Mon Jan 5, 2009

I've heard that because of the today's financial situation some banks allow to reduce interest rate without refinancing. Do you know when is it possible and what are requirements are?

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Debby Thomps…, Agent, Wauwatosa, WI
Mon Jan 5, 2009
First I would call the lender and see what they have to offer. If you are just looking for a lower rate and you have equity in your home they may be able to do a stream line re fi. But if you are upside down on your loan that would be different. Then you would need to go through the process of a loan modification. There is information the lender is going to want which includes a hardship letter. (reason you can't pay at current rate). You will need to have all your financial information together expenses and income. But first I would talk with your lender and see what they have to offer.
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Keith Sorem, Agent, Glendale, CA
Mon Jan 5, 2009
You should ask your lender. They will want to understand how it is that you qualified for the loan at one time and now you do not qualify. However, if you can make a good case (downsized, other external issues) and can prove that you are able to make lowered payments, you might have a shot at a loan modification.

Call the lender and ask them who you can speak with about your questions. Be prepared to document your current financial situation with bank statements, pay stubs, etc.
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