How Do You Adjust Mortgage Rates Without Refinancing?
The interest rate on your home loan determines your payment, and higher rates raise your mortgage payment. If you encounter financial problems, paying your mortgage may prove difficult. There’s always the option of refinancing for a lower rate. But because refinances involve out-of-pocket expenses, financially strapped homeowners may consider a mortgage modification to adjust or lower their rate without refinancing. Take immediate action. Contact your lender’s loss mitigation or homeowner’s retention department at the first sign of financial trouble. Explain your situation and mention your desire to lower your home loan without refinancing. Gather financial documents. Loan modifications are purposed to help homeowners who endure financial hardships. Gather bank statements, income statements and any other document to show proof of hardship. Show copies of medical bills and divorce papers, if applicable. This additional information helps lender’s determine whether you qualify for a loan
