Comments on: Is Mortgage Rate Modification Worth It?

By: Get A Mortgage With Good Or Bad Credit

Get A Mortgage With Good Or Bad Credit — Sat, 17 Jul 2010 09:56:04 +0000

Since we’re talking about subjects in the area of Is Mortgage Rate Modification Worth It? | Personal Finance Questions and Answers for Young Professionals, The disadvantage of this type of mortgage could be that if the Bank’s Base Rate falls you will not benefit from lower payments.

By: pbucelwicz

pbucelwicz — Tue, 29 Apr 2008 16:13:35 +0000

It’s true that contract modification with your existing lender is viable, but this is not always the case.

Contract modification is actually a simpler and less costly route to take. And lenders are open to this option. It is after all better than losing their borrowers to a competitor. Problem is, not all lenders hold this option. As a matter of fact, only a very small percentage of lenders hold the right to modify contracts.

Why is this so? The reason behind this is that most mortgages are serviced by lenders or firms that don’t own the loan. And most often than not, owners don’t give these servicing firms the discretion to give out contract modifications.

– http://www.squidoo.com/RefinanceMortgageQuestions

Sounds like this is a good option for you, and the reason your bank is pushing this option on you is because they are afraid you will try to refinance and go elsewhere. I think taking advantage of this offer can’t hurt you.

By: sergik12

sergik12 — Tue, 29 Apr 2008 14:01:17 +0000

I honestly think they are trying to bribe you. Since the price of your house is less then your mortgage you have all the incentive in the world to walk away from the mortgage. If they give you a discount for 6 months and hope that the price will start climbing then they won’t be stuck holding a worthless property. I would do a little more research if I was you but the deal sounds like a good idea.