Does it frustrate you that you are having trouble refinancing your high interest and adjustable loan due to the declining market? Real estate prices continue to fall with no bottom in sight, while banks are still reluctant to loan in an effort to conserve cash. This has left many homeowners unable to refinance their way out of a high interest and adjustable mortgage. Worst, some homeowners have an upside down mortgage, owing more than what the home is worth.

Many homeowners have decided to simply walk away from their home. They can’t afford the current payment nor does it financially make sense to keep an asset where it is worth less that what’s owed. Not all hope is lost just because you can’t refinance your home into a lower payment and interest rate.

An alternative way to refinance.

Did you know that the average cost of a refinance ranges from 1 to 2% of the loan amount? For example, a $500,000 loan typically carries almost $10,000 in origination fee. Not only are the lenders not willing to lend due to the credit crisis and declining market, even if you can get a new loan, you have to pay THOUSANDS in fees. What an outrage!

There’s an alternative to refinancing, without the hassle of getting declined by banks and at a much lower cost. The answer is loan modification / loss mitigation. A good loan modification / loss mitigation company can help you:

• Lower your interest rate so you’ll have a lower payment and save thousands over the lifetime of your loan.
• Change your interest rate from adjustable to fixed, no more worries about rising rate and payment, which will help you budget and live better.
• Lower your payment by lengthening the loan, a way to help you lower payment and increase cashflow. Giving you freedom to allocate more money for your family and your retirement.
• Decrease your principal loan balance, even wiping or waiving off your second mortgage. This is especially helpful if you have an upside down mortgage with no equity. What a great way to start building equity and wealth again by decreasing your loan balance.

Lender might not be writing new loans, but they are happy to work with existing loans.

More and more lenders are willing to do a loan modification rather than writing new loans. Writing new loans take capital away from the banks and put them in a bad position if they’re getting low on their cash reserve regulated by the Feds. The banks would rather work with existing loan, so they can prevent another house from going into foreclosure and lose money.

Not to mention, loan modification is cheaper than traditional refinancing. For a $500,000 home, a simple loan modification costs around $1500 - $2500, depending if you have a second mortgage or not. Refinancing can cost as much as $10,000 if you have good credit. If you have bad credit, it might cost you even more going through a hard money lender.