How To Lower Mortgage Rates Without Refinancing

To find out how to lower mortgage rates without refinancing, you should contact your mortgage lender and arrange a time to discuss your current financial situation. Make sure to have a positive attitude when you meet with your lender, and tell them you are willing to try and pay their loan off. Most lenders would rather lower mortgage rates without refinancing, and not foreclose on a loan that can leave them with a loss.

1. Before you meet with your mortgage lender, compile a list of your reasons for requesting a lower mortgage rate without refinancing. Give this list of your financial hardships to the lender, and review the items with them while you are meeting. This allows you to explain face-to-face what is causing you to have trouble paying your existing payments.
2. Tell your lender you would rather have them give you a modification on your loan, and not a straight refinance. Lowering your mortgage rates without refinancing is possible since the lender has to spend less time and effort. The lender will ask you what the maximum amount is you can afford to pay on the loan each month. They may increase this figure however, after they have applied a debt-to-income calculation based on your credit report and income verification.
3. The lender may offer to extend your loan term to lower your monthly payment amount. If the extended term drops the payment to an amount that you can afford, consider accepting the offer. A lower monthly payment is your main goal, and lowering mortgage rates without refinancing may not be an option with your particular lender.
4. If you think you have room to negotiate a better mortgage rate without refinancing, do not initially accept the lender’s offer. Make sure you have done some research online so you have an idea of current market rates. If the lender’s rate offer is much higher, your payment will not be as low as it can be if you haggle a little with the lender.
5. Once you have agreed to the loan terms, set a time for the modification to be finalized. Make sure you have provided all the necessary documentation to your lender, so the closing can be done as soon as possible. Continue to make any payments due in the interim to ensure your loan stays current.