Can You Ask Your Mortgage Company to Lower Your Interest Rate?

If you’re paying interest on your mortgage, can you ask your mortgage company to lower your interest rate? 

Keep reading to find out.

How Do Mortgage Interest Rates Work?

Your mortgage company is charging you interest on the amount you borrowed. What’s important to note is that it’s charging you interest to make your payments. After all, if you paid no interest on a loan, then the interest you’d have to pay on the loan would be higher than the amount you borrowed. But before we get into how your interest rate works, it’s important to realize that it’s not always easy to lower your interest rate. First, the interest rate on your loan is usually locked in at the time you take out the loan. Your mortgage company won’t drop your interest rate unless you pay them a lot more money than what they’re already charging you. You’ll have to pay the full amount of your loan to lower the interest rate.

Can I Ask My Mortgage Company to Lower My Rate?

This is a tricky question. For a mortgage, your mortgage lender makes the calls about interest rates. However, you can suggest to your mortgage lender that you want to see your interest rate lowered. In order to do this, you have to be able to offer them enough reason for the change. It’s true that there are plenty of good reasons you may want to see your interest rate lowered. And, it’s true that there are plenty of good reasons that your mortgage company may not be able to offer you. If your lender can’t reduce your interest rate, you may have to accept the rate you’re currently paying. But, if you have enough reason to be convinced, you can ask your mortgage lender to make a change.

What If I Can’t Make My Mortgage Payments Anymore?

You are actually protected from foreclosure under the Homeowners Protection Act. You also have three months to make a home equity withdrawal for any reason without paying a penalty. If you can’t make your payments, you should contact your mortgage company to get them to work with you to find a solution. If you want to switch from your current mortgage company to a new mortgage company, you can. However, most lenders won’t make the move unless you have been delinquent on your mortgage payments for 90 days or more. So, while you can switch mortgage companies, it’s not an ideal situation. There’s a big reason for that.

Contact Utah Sell Now

If you’ve been trying to lower your interest rate  but you’ve been unsuccessful, why not consider selling your home? Contact the experts at Utah Sell Now today. We buy homes in the Salt Lake City, Utah, area in any condition fast and in cash so you don’t have to go through the hassle of staging and showing your home, or paying a realtor. Call us for your no-obligation written offer and you could have money in hand for your home in as little as seven days.

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