Refinancing Home Mortgage
In: Mortgage Rate
13 May 2010I heard this the other day on the suze orman show that, if your mortgage, insurance and property tax, is more than 31% of your income you can ask your bank for a reduction in your interest rate. Is this true, and if so what’s the catch?
This is about mortgage information questions.
6 Responses to Can i get a reduction in my mortgage interest rate, if my monthly payments is more than 31% of my income?
muneepenee
May 13th, 2010 at 9:49 am
yu kan ask, but I dont thank yu will get.
tkahrs12122
May 13th, 2010 at 10:37 am
You can always try and I stress try to renegotiate your interest rate Whether you get it lowered is another story. If you have a great credit score and are current on all payments your mortgage lender may be more agreeable to a lower rate.
src50
May 13th, 2010 at 10:46 am
No.
slinkies
May 13th, 2010 at 11:37 am
you can ask for it, but it doesn’t mean you will get it … your bank will run your credit and determined your risk level and see if you qualify for a lower rate … there may be some negotiating involved … do not get an interest only payment, though … it may be less, but you aren’t paying any equity on your home … that is how a lot of people end up in foreclosure …
what?
May 13th, 2010 at 12:34 pm
well, i suppose you can always ask, but i wouldn’t get my hopes up.
you knew the payments and your income when you bought the house – if it’s too expensive, you can always move.
Impartial.co.uk
May 13th, 2010 at 12:44 pm
The government has introduced the hope for homeowners scheme which could potentially reduce your interest payments or even reduce the actual debt you have through debt forgiveness. The best advice is to contact your lender or a counselling agency to discuss your options.
As for the catch, the consequences of these options vary and can involve the government being entitled to a proportion of any appreciation in the value of your house. I suggest you get professional advice before making any decisions.
Disclaimer:
The answers above are for guidance only and should not be acted upon without you receiving professional mortgage advice relevant to your circumstances. To find an independent mortgage adviser please go to http://www.impartial.co.uk.