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Will A Hardship Letter Help Me Get A Low Mortgage Rate?

By Jim Micheals

If you are looking to refinance your current mortgage, a hardship letter will not help you get a low mortgage rate. Many banks may even panic if they are presented with such an item. However, if you have a hardship letter, you should try to apply for a loan modification program. The loan modification program will provide you with a low mortgage rate as well as lower monthly payments. Once approved for a loan modification your loan payment cannot exceed 31% of your pre-tax earnings. For many people this is a very large savings each month.

What Will Help Me Get A Low Mortgage Rate?

Under the current economic conditions the only way to guarantee a low mortgage rate is to have good credit. Good credit scores are key to any type of financing, especially mortgages. If you have really good credit you will be able to obtain a low mortgage rate. If your credit is considered “ok” or worse, there is still hope. Many people with bad credit can still qualify for low mortgage rates when they refinance their homes. The best thing that you can do is review your credit before applying, clean up any problems that you can, and confront a loan officer with your situation.

Will A Hardship Letter Help Me Avoid Foreclosure?

A hardship letter is generally only used to get into the loan modification program. It is not used to get a low mortgage rate or to refinance. If you are facing the possibility of foreclosure, you should attempt to apply for a loan modification as soon as possible. If you are able to qualify for a refinance of your mortgage, you should refinance to a low mortgage rate now, before any real problems occur.

Related posts:

1. Can I Lower My Mortgage Interest Rate Due To Financial Hardship?
2. What Is Mortgage Modification?
3. Will They Foreclose On My House If I Am Late On My Mortgage?
4. How Can I Lower My Mortgage Interest Rate Due To Financial Hardship?
5. Can A Mortgage Rate Home Modification Help My Debt Problem?