Any out of the box ideas for getting a lower mortgage rate?
February 26, 2014 7:43 AM Subscribe
I don't qualify for any of the recent government sponsored programs. I continue to drool over the low interest rates and want to know if there's something I'm not thinking of that I could take advantage of before rates start to crawl back up.
posted by SquidLips to Work & Money (6 answers total) 2 users marked this as a favorite
So, here's the relevant details. I refinanced my mortgage in 2006 at 8.75%. I had poor credit (in the high 5's), and my plan was to suck it up and pay the higher interest, and in two years when my house was worth more and I had repaired my credit, I would refi again at a reasonable rate.
Well, I was at least successful with the credit rebuilding, I'm now in the low-mid 700's. But the economy and real estate collapse didn't cooperate; my home value is now far too low. Current balance is about 195k, my guess on the home's value (based on tax statements and recent home sales in my area as found online) is 140k. I've put on a screen porch and deck, and plan to have the basement finished by the end of this year. At that point we plan to pay for an appraisal just to see where we stand at that point to see if there's any possibility the improvements will bump us back up to a break-even level, but frankly I don't see 50k value form the above improvements.
I've never been late on a mortgage payment. The loan is through HFC, and is not backed by Freddie or Fannie. After letters and phone calls, HFC refuses to even consider any kind of modification unless I become significantly behind in my payments, which I'm not willing to do after all the work rebuilding my credit. Mortgage is in my name only, but I've gotten married since the original refi. I have a sizable 403(b) but it is not liquid / loan eligible since it is an employer-sponsored pension. Savings exist but fall well short of what I would need to true things up. I'm not necessarily looking for principal reduction - I owe what I borrowed - but an interest rate closer to current levels could save us hundreds a month. None of my banks or my CU are willing to consider anything being we're so far under water. I'm pretty much resigned at this point to being depressed about it and hoping for the best come appraisal time, but wonder if anyone has some ideas I've not thought of that could help. We're in MN if it matters.