- 1). Be prepared to show your most recent income and bank statements. Before entertaining the idea of renegotiating your mortgage rate, your lender will want to review your personal finances. This provision is typically only available to distressed homeowners who are behind on their payments.
- 2). Write a hardship letter. This document or letter provides a detailed report on your financial situation. For example, if a layoff, illness or drop in income makes it increasingly difficult for you to pay your mortgage at the current interest rate, include this information in your hardship letter. Along with your financial history, lenders use this letter to determine whether you're eligible for a modified interest rate.
- 3). Take a close look at your finances and determine what you can afford to pay. Do your homework before meeting with your lender. Based on your income and expenses, get an idea of what you can afford to spend on a monthly basis. Present this figure to your lender to see if it is able to renegotiate your interest rate to accommodate your requested monthly payment.
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