Interest rates on mortgage loans are extremely low right now. As a result, refinancing your mortgage is a popular thing to do these days. With rates where they are, it makes financial sense to do in many cases. Here are some helpful hints to look at to decide if refinancing your mortgage is the right thing for you.
When you run into financial difficulty, write a hardship letter explaining why you are having trouble with your monthly mortgage payment. Your letter should contain the reasons why you cannot keep up with your payment, your income-to-debt ratio and what you have done to keep up with your payments. Furthermore, you will need to have a clear plan as to how you will keep up with your lower monthly payments after the loan modification. You will also have to show that you will not return to a situation where you cannot pay your monthly mortgage payment. Spend time on this letter because it is vital to your application especially if you have already received a Notice of Default.
Be approachable and be willing to offer detailed answers to questions from the lenders and the banks. In order to do this, you will need to be prepared with the correct paperwork and notes. You will also need to be persistent, but your attitude is just as important. Read and complete all paperwork careful and ensure they are accurate. If you have misleading information on your documents, you may not be approved for a loan modification.
Especially if you bought the house with an adjustable rate mortgage that changed rates just as your ability to pay decreased, you will meet the government's qualifying criteria. Your lender prefers you qualify for assistance and pay regularly on a modified mortgage; your lender does not want another devalued home among his assets.
With interest rates as low as they are today, you might be able to refinance your 30 year mortgage to a 15 year mortgage with little to no change in the monthly payment.
