Mortgage Rate Reduction

When the servicing mortgage company reduces the interest rate without requiring a formal refinance, it is usually referred to as a mortgage note modification. This is typically the quickest way for homeowners to get payment relief. In most cases the mortgage lender will revise the term of the mortgage by stretching the amortization schedule to forty or fifty years. Many homeowners have reported interest rate reduction of 1 to 2% and this saves the borrowers hundreds if not thousands of dollars a year.