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Category: Finance
Satisfied Customers: 3820
Experience:  40+ years experience in taxes and financial planning
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How do I get the interest rate on my loan lowered if I have

Customer Question

How do I get the interest rate on my loan lowered if I have a jumbo loan over 720K and due to price drop I can't get a conventional refinancing (LTV around 92 percent)
Submitted: 5 years ago.
Category: Finance
Expert:  CGCPA replied 5 years ago.

Welcome to Just Answer. I am here to help you resolve your tax and finance concerns. Please feel free to ask anytime you need extra help.

There is a cap on loans qualifying for a HAMP modification and you are close to this. However, you may still qualify. Here is a short piece addressing your concern:

How does someone get a loan modification?

First, gather this information:

  • Information about the monthly gross (before tax) income of your household, including recent pay stubs if you receive them or documentation of income you receive from other sources.
  • Your most recent income tax return.
  • Information about your assets
  • Information about any second mortgage on the house.
  • Account balances and minimum monthly payments due on all of your credit cards.
  • Account balances and monthly payments on all your other debts such as student loans and car loans.
  • A letter describing the circumstances that caused your income to be reduced or expenses to be increased (job loss, divorce, illness, etc.).

Second, call your mortgage servicer and ask to be considered for a "Home Affordable Modification", or HAMP. The number is on your monthly mortgage bill or coupon book. Honestly state your situation. They will assess your financial state through phone calls and paperwork to determine whether you qualify for a loan modification. Keep copious, detailed notes on who you speak with and details of the conversations so you have documentation down the road if you are faced with foreclosure.

Third, depending on the direness of your financial difficulties, its always good to hire legal counsel. Get a referral from your local state bar association.

Fourth, call a local HUD-Approved Housing Counseling Agency for guidance.

You can read more at the following link:

Since there is a cutoff date I recommend that you begin very soon. You need to contact your lender for this. I do not recommend using any of the outside services for this. They make great promises but some are scams.

Customer: replied 5 years ago.
I have a first of 793 and second of 145, so I am way over the 719 limit. I have filed the HAMP with GMAC and they tell me I have to do a conventional refinancing and I don't believe they ran an NPV anyway.
Expert:  CGCPA replied 5 years ago.
Since you are over the limit you may not be able to modify the mortgage(s) unless the lenders are willing to cooperate or you can do a refinance.