Archive for the ‘adjustable’ tag
Adjustable Mortgage Rates
I own a rental property that is now "under water". It has an adjustable rate mortgage. How do I fix
What steps should I take to get the lender to change it to a fixed rate mortgage with a lower payment?
Lender is not obliged to change your current loans. But if there is no prepayment penalty, there is nothing stopping you from simply refinancing, paying off existing loans with a new fixed rate loan. The problem is, of course, you'd need to pay down the loan enough to make it to a level where you could get a new loan. If you want to negotiate with your current lender, you have to convince them that it is in their best interest to do so. Be prepared to provide them with full documentation of your finances. They can offer a short sale option or deed instead, in which case they will simply take the property back in exchange for forgiving the loan. You have to convince them to modify their loans will end up costing them the least amount of money – it can be a tough proposal to support. Good luck.