Question by moiramee1: Can our mortgage company take away our mortgage?
We are thinking of refinancing our mortgage. But our income and credit is A LOT worse than when we were originally loaned the money 3 years ago. Can the mortgage company now penalize us on our current mortgage/decide not to lend us money based on our greater risk?
Answer by Kamal
I am assuming that you are not late on your payments. Most likely, the bank will not approve your application to refinance, but your present mortgage they cannot touch, or change interest rates or anything like that.
Know better? Leave your own answer in the comments!
No…a contract is a contract. As long as you live up to the terms of your mortgage obligations, your lender cannot “take away’ your mortgage.
Thank goodness NO. What you mention is something banks can do and will do with credit cards, but a mortgage, no. Even if should get behind on the mortgage, if you are able to make up the payments before any final lender action, they still can’t take the current mortgage away.
You might have difficulty refinancing now. You didn’t say what “worse” is, so can’t say for sure. But FYI, generally speaking, in most cases you need a 620 score to get approved for a mortgage loan these days. And of course, your income must cover your debts and leave you a cushion.
Have a great Holiday.
Your mortgage lender can’t take away your current mortgage loan, but they might decide not to refinance your loan based on your credit score. They may also choose to refinance your loan at a higher rate than you want, reducing or negating the benefits of refinancing. You should definitely shop around if you’re considering refinancing. Your current mortgage lender is not your only option.