How can I lower my interest rate on my mortgage?
I, like many others, have had financial issues and defaulted on my mortgage, 120 days+. I now am back to normal servicing, but have a higher payment than originally. When I went into default the mtg. co. said they raised my interest rate because of the default, increasing my pmts. $200.00 a month. I keep getting letters that I can streamline my mtg. or reduce the interest rate because it is an FHA loan, even if you defaulted, but when I inquire and someone say’s they will get back to me, I never hear from them. So, again I now struggle with a 1,900.00 pmt., horrible credit, and wonder how I can reduce the interest which I believe is at 6.7 or 6.5 when it originally was 6.35. My husband and I work and are stable and we have a excellent amount of equity in the home. It’s sad that the only people who benefit by lower rates are those with brilliant credit and no past or present issues, but people like me who need a lower rate to not have terrible credit or build it up, and avoid issues, are the ones who cannot even get considered. With everything we need to survive and get to work so expensive how can there be a balance of some sort? Can someone help?
PLEASE KNOW THAT I DO NOT FEEL THAT PEOPLE WITH BRILLIANT CREDIT SHOULD PAY MORE LIKE ONE OF THOSE WHO ANSWERED MY QUESTION IMPLIED I DID. THE POINT IS HELPING THOSE WHO DO NOT HAVE EXCELLENT CREDIT REDUCE THEIR PAYMENTS AND IF THE ONE WHO ANSWERED AND IMPLIED THAT DOESN’T KNOW THE ISSUES TODAY WITH THE ECONOMY OR DON’T CARE BECAUSE THEY DON’T AFFECT YOU THEN DON’T COMMENT.
Related FHA and HUD Posts
- what interest rate for a mortgage can i expect with a credit score around 580?
- What’s the best mortgage interest rate I can get in Northern Virginia at this time?
- Since the Federal Reserve lowered the the interest rate by a .5%, should my interest rate change?
- FHA Refinance loans – Lower Interest Rates mean more Refinance education is needed
- bad credit fha loan,bad credit fha loan mortgage va,bad cre
- Please help me decide between 2 mortgage loans.?
- New Mortgage Question?
- When can my husband and I get a home mortgage?
- Can I get approved for a bigger mortgage if my rate goes down?
- Are the FHA interest rates expected to drop?
- I have a 5/1 FHA 30 yr mortgage – though the interest rate is 6.0% and the APR is 5.75%- is this possible ?
- How much more should an APR be than the base mortgage rate?
- FHA Streamline Refinance Program – FHA Mortgage Refinancing Has Many Advantages!
- First Time Home Buyer Tax Credit, FHA Loans, Low Mortgage Interest Rate Program
- Current Fha Mortgage Rates – Where Do You Stand
- Why Is The Interest Rate On A Fha Mortgage Loan Lower Than A …
- FHA loan, when can I use the deposited credit line from card for down payment?
- What do you need to qualify for a FHA loan?
- How long after buying a home can you refinance?
- Florida FHA loan, Florida FHA Mortgage Lender, Florida FHA mortgage, Florida FHA home loan
- Florida FHA Mortgage, FLorida FHA loan, Florida Mortgage Lender
- Florida FHA Loans, Florida FHA Mortgage, Florida FHA Lenders, 97% Financing
- Can income from renting out rooms help you qualify for a larger FHA mortgage?
- I’m thinking of having someone assume my FHA mortgage…..?
- Mortgage question. Please help!?
- Can an interest rate, once “locked in” be changed (lowered)?
- FHA Mortgage Loans – What Are They?
- Questions on my mortgage application?
- Possible mortgage lender not returning our call?
- Can a mortgage company report you to the credit bureau after making partial payments?
- Mortgage foreclosure: should we just stop paying?
- FHA Mortgage San Antonio Texas FHA Loan Information
- Nevada Real Estate >> Las Vegas Real Estate Specialist: Active …
- Who to streamline our mortgage through?
- Is the 1.75% Mortgage Insurance Premium (FHA loan) up front payment tax deductible in the tax year its paid?
- fha 100 loan,fha 30 year mortgage rates,fha home loan,fha l
- Fixed 30 yr Jumbo Mortgage Question?
- How do I choose a mortgage lender in Michigan?
- Did I get a good deal on this mortgage????
- In 2003 what did FHA Reverse Mortgages pay in interest on unused available cash?
- Mortgage FAQ — FHA Mortgage Benefits
- Most accurate Mortgage Rate daily report???
- can someone explain to me a simple formula to find a monthly mortgage payment?
- The Mortgage Design – Home Mortgage Denver
- FEDERAL RESERVE CUTTING RATES AGAIN…will this get me a better rate?
- Mortgage rate question?
- Mortgage Phoenix AZ Americana Mortgage
- Is a 6.5 rate high for a subprime mortgage 30 year fixed?
- Streamline Mortgage Cash Out?
- Tax Credit for First Time Home Buyer Loan, Government Assisted Financing Program and FHA Mortgage
Tags:
bad credit,
economy,
fha loan,
FHA Mortgage,
Interest,
interest rate,
lower,
mortgage,
mtg,
pmts,
rate
This entry was posted
on Sunday, February 7th, 2010 at 12:51 pm and is filed under FHA Mortgage.
You can follow any responses to this entry through the RSS 2.0 feed.
You can leave a response, or trackback from your own site.
Top incoming search terms for this post
You CAN get a lower rate with a re fi …the distress is finding a place to give you one …..
I’d suggest talking with Quicken , Dietech , and Bank of America …. or even local INDEPENDENT banks in your area …
Don’t grab the 1st deal; that you come across ..check out SEVERAL before you choose …..
Above all ; Do NOT go thru a “Mortgage Broker” as you’ll end up paying several Thousand $$$$ at closing for their service …. Just make sure that your lender is a Direct lender ……
Best of Luck to You …..
The FHA is swamped AND the budget year just finished last month. Try again until you get help or an official “no”.
Keep in mind that historically, 6.7% is a LOW rate. It is only in the context of the free money (which got us into this distress) that it seems “high”. My first home I had to place 25% down AND I paid 10% interest.
And truly, what is really sad is that those of us that have remained current, and still owe more than we own, get NOTHING. Nada, zilch, zippo. As a matter of fact I get to pay more taxes because I had to go and take a second job to stay current, so taxes paid in go up. Yeah me! Punished, once again, for doing the right thing.
Check out the new laws, see if they help. Go to them/call them and insist on help with the FHA loan, not sure whether you qualify for Streamline. Stay on phone, don’t let them call you back, request to speak to some one NOW. Be polite and firm, clarify you’ve been waiting so long already.
People who are a higher risk pay higher interest, because there is higher likelihood of default, and problems and these incur fees for lender. Sounds like that interest rate increase shouldn’t have been that much monthly.
Extra payments of principal can GREATLY reduce the interest you pay over life of loan, whether $20 or $200 extra a month as you’re mostly paying interest in first 5-10 years.
“It’s sad that the only people who benefit by lower rates are those with brilliant credit and no past or present issues”
Why lower rates on people like you, who are greater risks? You reckon people who pay their bills on time should pay more?
Get out your mortgage contracts and read all the fine print and determine if the mortgage company has LEGALLY changed your interest rate. UNLESS you have an adjustable loan most loans have a set interest rate and then tack on penalties when the payments are late.
Have you made any other deals with the bank like them allowing you to make the regular payment and the 200.00 is to make up for the missed or overdue payments?
Again read your contract and then do not be worried to QUESTION them concerning the increase. If you can not find your papers then fax or mail them a letter asking them to provide the section of your contract that allows them to change your interest rate under these circumstances.
Sad to say but lenders look at 120+ lates on mortgages as foreclosure. 6.7% is a fantastic rate and you wont get much better. I do believe that people who are able to control their credit deserve the lower rates, sorry but right. Did you talk with your mortgage company during the period of time you were defaulting? They are willing to work with you more than ever now. They rather get some sort of money out of you than nothing and having to pay the legal fees to start foreclosure proceedings. They dont want your home they want money. Talk with the current lender more.