Can I negotiate with my mortgage lender for lower interest rate?
Written By: admin on June 11, 2009
One Comment
Right now I have a fixed-rate mortgage at 6.25% but the job situation is terrible and both my wife and I cannot afford to pay the mortgage and our debt. Is it possible to negotiate with our current lender to lower the interest rate to what the government has out now? (lower than 5% I reckon). How does that process work? I don't want to refinance, I just want to negotiate for lower interest rate.
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Tags: fixed rate mortgage, interest rate, job, mortgage interest rateTags: fixed rate mortgage, interest rate, job
I reckon a loan modification would be your best bet in this situation. Refinancing would cost a lot in the end with the closing cost and commissions to the loan officer. I've done a couple loan modifications and the people are usually in a much better situation afterward but there are never any guarantees. I suggest you go to someone experienced in loan modifications and goes through an attorney because they'll be a lot more qualified to negotiate with the lender. As long as you have a decent cash flow going and your showing a real effort to try to stay in your home. One last thing is that loan modifications are only available for people in hardship meaning you have to be behind at least one payment. But for sure consult a professional before you take any action.