What Is A Mortgage Rate Reduction?
A mortgage rate reduction occurs when the original mortgage interest rate has been reduced to a lower interest rate. There are various ways to get a mortgage rate reduction. The most common way is through a mortgage refinance. However, many lenders offer specialized programs to reduce mortgage rates for homeowners who are experiencing financial difficulties.
Refinancing a home mortgage to receive a rate reduction will save you hundreds and possibly thousands of dollars over the lifetime of the loan. There may be certain fees and closing costs that you must pay in order to receive a rate reduction, but you will have the security of knowing that your monthly mortgage payment will be lower. Look at the current mortgage rates, and choose the lender that offers the lowest rate. You are not obligated to remain with your current lender when you refinance your mortgage.
Homeowners who are financially strapped are turning to their lenders for a mortgage rate reduction under the TARP Mortgage Reduction Program. This is also known as the Making Home Affordable Program. If you qualify, you may receive a mortgage interest rate reduction and a principal balance reduction. This type of home loan modification may give you a rate reduction for a specific period of time and then return to the original rate. Pursuing this type of rate reduction will take patience and persistence on your part. Lenders have been inundated with requests for this program. To make sure that your modification request moves forward, you will need to stay in contact with your lender on a regular basis.