When Is My Rate Reduced If the Review Is Successful?
Current homeowners who are considering requesting a mortgage rate review from their mortgage broker or lending specialist may wonder when their mortgage rate will be reduced if the mortgage rate review is successful. Well, an individual’s mortgage rate will be reduced within 14 days or during their next payment cycle depending on which option takes more time.
Their mortgage rate will be reduced through the option that takes the most time. A mortgage rate review allows a homeowners mortgage broker to review the various information regarding themselves and their current home loan, including an individual’s financial status, income, and credit score, as well as a current home loan’s interest rates and monthly mortgage repayment cost.
After the mortgage rate review reveals beneficial results, a homeowner can opt to alter their current mortgage terms with their mortgage broker. However, the administrative fee to successfully alter the terms costs $100. Altering home loan terms with your mortgage broker is also referred to as a home loan amendment.
Home loan amendments have the potential to benefit a homeowner in a few different ways, including the following results:
- The potential for a decreased loan principal amount, although this is a rare result
- The potential for a mortgage loan interest rate
- The potential conversion of the loan type from a variable interest rate to a fixed interest rate
- The potential for an extended loan term period
However, the results of a mortgage rate review and a home loan amendment largely vary from individual to individual depending on various factors.