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lower interest rate

Is there help out there for my situation? My mortage is not FHA, Fannie Mae or Freddie Mac. I am able to pay my mortgage every month, I'm not in financial hardship (according to the requirements). My mortgage is underwater by 38%. Is it possible for me to get a lower interest rate? My current rate is 7%.

  • June 13 2012 - Atlanta
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Answers (3)

Your options...

1) keep paying the current mortgage at the current rate
2) pay down the balance of your current mortgage to get under 95% loan to value (or 80% to avoid paying mortgage insurance)
3) stop making payments for 3 months and then try to get a loan modification through your current lender, your credit will be screwed up though.

Just because there are special programs for FHA, Fannie, and Freddie loans does NOT mean that every homeowner will be able to refinance.

  • June 13 2012
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Profile picture for hsinchuan
Thanks. Already checked with lender. The lender does not offer refinance. The only loan modification they will do is for short term (6 months) if I qualify. Looks like I'm stuck with this high interest rate mortgage.
  • June 13 2012
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If you are correct about all of those factors, only your current lender has a reason to help you.  Of course, you may ask why they would want to lower your rate if you are steadily paying them 7%.  Their motivation is that you are more likely to continue to make those payments at a lower rate.  Their biggest fear is that you become unable (or unwilling) to make the payments. Then they will be "underwater" when they take back the property.
  • June 13 2012
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