How Can I Lower the Interest Rate on My Mortgage?

TipHero - Your Guide to Saving Money

Tip Hero serves up fresh money-saving tips daily,
with over 2,000 tips shared to date.

GET FREE UPDATES:

Tips by Category:

Q & A

Home > Q & A > Topics: Mortgages

-----------------------------------------

How Can I Lower the Interest Rate on My Mortgage?

Submitted by: pam 01/09/2009 10:07 AM

Can you please tell me how to get a lower interest rate on my mortgage?House value and mortgage are the same amount owed, $480,000.00 at interest rate of 7%. Price on my house has dropped from 550,000.00 to 480,000.00. thanks for any info..single parent with two children, working seven days a week to make a $4,000.00 mortgage payment.thanks..

---
sponsored: Find Money Budgeting Tips.

---
Tip Hero serves up new money-saving tips daily.
Get free updates via Email , RSS or Twitter.

More Money-Saving Tips:

12 Ways to Make Extra Money

18 Money-Saving Grocery Shopping Tips

A Quick Guide to Debt Settlement

Want To Save Money On Auto Insurance?

Sponsored Searches:

Make Money From Home

Money Saving Tips

Online Sweepstakes

Comments:

.................................

Hi Pam - You can contact your finance company and ask for a temporary waiver due to financial hardship. If you have a clean (good/excellent) pay history, they can move 2-6 months worth of payments to the back of your loan. During that 2-6 month period, you can search for a new loan, seeing as how you can get a new 30Y Fixed for as low as 5%. Also, you can ask your finance company to streamline your loan. Streamlining involves re-writing your current loan with a full point reduction in rate, for less than $4K. I pray this advice has been helpful.

Posted by Arlene on January 09, 2009 12:13 AM

.................................

Pam, I would definitely ask your mortgage broker if you can refinance. (note this does depend on how many years you have paid off of your current loan as if you paid 10 years, signing on to a new 30 year loand might now be fiscally smart) Even if you refinanced for a 25 year fixed loan for the going rate of 4.75% ( I just refinanced with Wells Fargo at that rate) you will be paying less than you are now. If you explain to the mortgage holder that you will be less likely to default if they can rewrite your loan they may be more inclined to agree to a refinance. Note when you refinance expect to pay $2000-4000 in closing costs, but you can have this rolled into your loan so you don't have to pay it up front.

Posted by christyp on January 09, 2009 10:20 AM

.................................

Pam,
You should check out UFirst. While it won't necessarily lower your monthly payment, it may help you pay off your mortgage much MUCH more quickly and increase your equity dramatically.
Call Allan Haggar at 630 441 8426. He'll do your analysis for free and there's no pressure. He saved my friends $250,000! If it will work for you, he'll help you. If it won't work for you, he is really nice--he doesn't try to sell you something that won't help you.

Posted by Angel Stoner on January 15, 2009 7:34 PM

.................................

Pam,

UFirst is great! I use it myself and will be debt free in 3.25 years.

But, there is an additional option. The Helpful Hands Foundation is a non-profit organization that helps people in this situation. The website gives you free advice, or you can get the help from an advocate that will work for you.

The good news is that banks are willing to talk now - they do not want more foreclosures on their books. And even if you are not near foreclosure now, it may be a possibility in the future, so they will listen. Problem is they do not listen to the average homeowners. The do listen to our organization!

Thanks,
Carol

Posted by cerickso on February 15, 2009 9:39 PM

.................................

Homeq will not work with me to lower interest rate which is 11%

Posted by anonymous on March 01, 2010 8:23 PM

.................................

-----------------------------------------

Share Your Comments:

Comments may need to be approved before they are displayed.

Comments:

Name (leave blank if you want to be anonymous):

Email Address (your email address will not be displayed):

Website URL (not required; please do not include "http://"):