How to Lower Your Mortgage Rate Without Refinancing
- 1). Call your mortgage servicing company to see if you qualify for a loan modification. Your home must be your principle place of residence. If you have investment property, you may qualify as long as you live in one of the units. Your mortgage servicing company will review all of the details to see if you are able to receive a loan modification. Your current mortgage payment must generally be greater than 31 percent of your gross monthly income to qualify for a loan modification, according to the Making Home Affordable website.
- 2). Submit the proper paperwork. Your mortgage holder will need the loan modification application; the hardship affidavit and copies of your tax returns and recent pay stubs. All of these documents help the mortgage servicing company make a determination.
- 3). Make your trial payments. To be considered for a loan modification, you must make the new payment three consecutive months in a row to complete the process. If you cannot make the new payment during the trial period, your request for a loan modification will not be approved.
