How Do I Ask for a Lower Rate With a Current Mortgage Company?

Refinacing your mortgage can dramatically lower your monthly payment.

Many homeowners today struggle with paying their mortgage. If you are having a difficult time making your monthly payment, immediately contact your mortgage company to discuss your options. Even if you are locked into an interest rate, you may still be able to refinance when national interest rates drop or your credit score increases significantly. If you have fallen behind on your mortgage payments, consider applying for a loan modification. If you qualify, your interest rate can be lowered.

Instructions

1. Maintain your credit. Regardless of how you want to lower your interest rate, your credit will play a role in the approval. Pay all of your bills on time. Even if you are unable to pay your mortgage, keep all other debt to a minimum. The mortgage company will compare your debt-to-income ratio before it can lower your interest rate through refinancing or a loan modification.

2. Monitor current market trends and interest rates. Stay informed. If you notice the national interest rate is much lower than your current interest rate, present this information to your mortgage company. Keep an eye on new laws and programs to help homeowners in financial need. For example, President Obama introduced the "Making Home Affordable" program in 2009 to offer refinancing and modification options to homeowners. The program even offers assistance to unemployed homeowners.

3. Contact your mortgage company to discuss your loan details. Explain the situation and why you are requesting a lower interest rate. It will be able to explore your options with you. If you are current on your mortgage, you may be eligible for an interest rate reduction through the Home Affordable Refinance Program. The program offers incentives to people with good credit who remain current on their loan. If you've been delinquent on your payments, speak to the loss and mitigation department of your mortgage company.

Tips & Warnings

• You can also call the Hope Now Hotline at 888-995-HOPE. Foreclosure prevention counselors answer calls 24 hours a day. A counselor will be able to call your mortgage company to request a lower interest rate or repayment plan to save your home.

References

• Loan Modification and Litigation: Making Home Affordable: Program's Loan-To-Value Limit May Soon Change
• Making Home Affordable: Borrower Frequently Asked Questions

Resources

• Hope Now: About the Homeowner's Hope Hotline