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JustAnswer.com

Foreclosure Question - Should A Loan Modification Lower Or Raise Your Interest Rate?

by Bradley C.
(Pittsburgh, PA)

Stopping Foreclosures helpers, I hope you can answer this??... I need to know if loan modifications can raise or could it lower interest Rates?

Response From Stop Foreclosures Team:

Hi Bradley,

There is a lot that goes into determining your interest rate in a loan modification. Basically, it could go either way. Some will find that their interest rate will be reduced a little, but not by a lot, while others will find that their interest rate has increased slightly.

Again, if there is any change in your interest rate, it will only be a small amount and it really should not increase your payments or lower them by too much.

Of course, getting a better interest rate is never the goal or reason for the loan modification. The point is to bring your loan out of default and to bring your payments completely current.

All in all, those helping you with the loan modification will work to make sure that your new monthly payments are going to be able to fit into your financial budget, or else they would not be able to approve it at all.

Hope this helps you!

Jay
SF Team

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