Can you negotiate a lower monthly mortgage payment?

Actually, it’s totally possible. But it’s not as simple as haggling over percentage points. To negotiate your mortgage rate, you’ll have to prove that you’re a credit-worthy borrower. And you’ll have better luck if you come to the table with a lower quote from another lender in-hand.

How does a loan modification help lower mortgage payments?

A loan modification changes the original terms of your mortgage to help you get caught up on payments. Lenders prefer loan modifications to expensive alternatives like foreclosure and short sales. A loan modification may reduce your principal, lower your interest rate, extend your term, and/or postpone your payments.

What can I do to reduce my mortgage payment?

Under this option, you reach an agreement between you and your mortgage company to change the original terms of your mortgage—such as payment amount, length of loan, interest rate, etc. In most cases, when your mortgage is modified, you can reduce your monthly payment to a more affordable amount. A modification may be an option if:

When to apply for a refinance or loan modification?

You might want to refinance your loan if you’re having trouble making your mortgage payments or if you want to take advantage of a lower interest rate. However, you may also want to apply for a loan modification from your lender. Refinances and loan modifications both have their own benefits and drawbacks.

Can a person qualify for a mortgage modification?

However, if you start earning less (due to a job change or other factors), you might still be able to make regular payments, but only if you can reduce the monthly cost. There are several reasons why people might no longer be able to afford their current mortgage payments, which might qualify them for a modification.