Question by John H: How can i lower my mortgage payments without refinancing?
I’ve heard from a friend that Obama came up with a new plan, anyone know what that is or about? Whats the right way to go to lower my payments without having to refinance? Thanks
Answer by OldJimmy
There are plans out there to help people who are having real trouble in keeping their homes. These are designed to help folks that have absolutely no other alternative and are in danger of foreclosure.
If you have a good payment record with your lender, though, you can call them to see if they have a rate modification program for their good customers.
If your current rate is above market, they can lower your interest rate to something closer to market, and only charge a small fee of $ 300 to $ 500 to do this. You don’t extend the loan or change the principal, just lower the interest rate.
I have done this 5 times over 10 years with my lender, and actually have a slightly below market rate now.
What do you think? Answer below!