Reduce Your Interest Rate

Are you struggling to make your mortgage payments? A loan modification with your lender can make your monthly mortgage payments more affordable. There are several types of loan modification options for homeowners facing financial hardships, such as principal reduction, loan term extension, changing the loan type, and an interest rate reduction.

One of the most common types of loan modifications is the interest rate reduction which decreases the amount of interest you pay over the life of your loan while giving you a more manageable payment.

Interest Rate Reduction Modification

Your lender does not want to foreclose on your home. The typical foreclosure results in a $60,000 loss for lenders, which means most are willing to modify the terms of a loan if you can show you have a legitimate financial hardship such as long-term illness, job loss, disability, death of a spouse, or reduction in hours at work.

If a reduction in your interest rate is granted, your lender will re-underwrite the loan to determine a better rate based on your debt-to-income ratio. In some cases, your rate reduction may only last for 5-10 years then increase back to market rate. Some homeowners can get a permanent rate reduction to enjoy a low interest rate for the life of the loan.

A temporary or permanent interest rate reduction is a common loan modification offer made by lenders because it is affordable for lenders and investors and helps the lender avoid foreclosure. Banks are typically willing to offer interest rate reductions in order to avoid foreclosure on a home, which results in an average loss of $60,000. Lenders also understand that making your payment more affordable when you are suffering financial hardships is in their best interest because it makes it more likely you will remain current on the loan and keep up with payments.

Contact a Las Vegas Loan Modification Attorney

If you are experiencing a financial hardship of some type and struggling with your mortgage payments, loan modification is one option that can help you save your home. An experienced bankruptcy and loan modification lawyer in Las Vegas can help you determine if loan modification or Chapter 13 bankruptcy is the best solution for your situation and work with your lender to lower your payments. Contact Las Vegas BK to learn more about loan modification and discuss your case.