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Is Mortgage Rate Modification Worth It?
Asked by kherron on April 28, 2008
My bank recently presented me with a by phone offer to enroll in their mortgage “Rate Modification Program”. What I gathered from my conversation with the representative is that the bank is offering this in order to encourage folks to stick with them through the tough market. Since I currently have an adjustable rate mortgage and since my home’s value has decreased over the past year or two I’m stuck in a position where refinancing is going to be difficult. What they are offering me is a 6 month term in which they temporarily reduce the interest on my mortgage by 50% or more which drastically reduces my monthly payments. They insist that there is no catch to this offer but it sounds to me like something that is too good to be true. I’d love to save the money but I don’t want to adversely affect my credit, is it worth it?
Popularity: 18% [?]
Categories: Loans
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