When mortgage rates drop, homeowners often wonder if they will be able to take advantage of lower rates. In general, lenders require borrowers to refinance into a new home loan in order to change their mortgage rate, requiring the borrower to requalify, the house to pass an appraisal and the homeowner to again pay closing costs. However, there can be another way to lower your mortgage rate without refinancing: a loan modification.
Loan modifications for troubled homeowners
If you are having trouble keeping up with your monthly mortgage payments, installment loans Columbus IL you can apply for a loan modification to reduce your interest rate and hence, lower your monthly payments.