Converting Your ARM Loan Rate to A Fixed Rate

Rising interest rates signal that it is time to convert from an ARM loan rate to a fixed rate of interest. If you plan on staying in your home for at least seven years, conversion is also a good idea for you.

What you Need

Things such as the value of your assets and your medical expenses will be needed. Also, have access to your recent pay stubs, recent bank statements, W2s, and other financial papers.

Step One: Initial Consultation

Before your meeting, learn the details of loan modification. A reputable lender will offer you a first meeting for free. At this meeting you will figure out if you are qualified for loan modification, provide information on your finances, and determine your level of risk. Your credit score will be calculated and your debt-to-income ratio.

Step Two: Applying

Your application must present you as worthy of loan modification. Prove that you are able to pay for the loan now and that you will be able to pay it off in the future. Calculate your debt-to-income ratio. Include a letter that explains why you need to lower your monthly payments. Make sure that this application is totally complete before submitting it.

Step Three: Wait

After you apply for modification, the value of your property will be determined. If you are approved, your lending company will notify you. You will not be approved if the lender believes you will default on the new loan.