One more question. When I was at the 341 meeting I overheard another filer talking with their attorney about how they got their mortgage company to lower their interest rate since they filed. The attorney told them that they should also check to see if their first mortgage would refinance them and pay off their second mortgage. Has anyone heard of this before? I have pretty steep interest rates on my mortgages, but never thought they would reduce interest rates. They are fixed rate mortgages. Don't know if I'd sound like a dummy if I called and asked or not.
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It's possible...but the bank usually wants to see changed circumstances on your part (i.e. medical issue, job loss, etc). Now would probably be a good time to ask...if your interest rate is above the current market rate, you can sometimes get the mortgage company to re-cast your loan at the current market rate. However, doing this type of re-casting assumes you have the credit worthy-ness to qualify for the rate in the first place. -
Thank you for your response. What does re-cast your loan mean? My current interest is 8.5 on first and 11.6 on second. Do you know what the current market rate is or where I can find it out? I'm at about 90-95% LTV. IF I filed bankrutpcy, probably not credit worthy-ness.Originally posted by HHM View PostComment
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A website link like Bankrate.com can give you and idea of what the "best" interest rates.
Currently a 30yr Fixed is sitting around 5.9%
A re-cast is where they simply change the terms of the original lending note (as opposed to a re-finance where a new loan is issued)
When did you buy your house to get rates like that...last time market rates were in the 8's, was around 1999-2000.
Realize, getting a re-cast is a long shot especially if your credit is shot.Comment
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I actually refinanced it just last year, July 2006. It was with New Century........before they went out of business. I had an adjustable rate mortgage and I was suckered into it thinking it was my only option since I wanted a fixed rate. I'll give them a call, it's worth a shot. Would I need to get the trustee's approval for this or not?Comment
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