Forcing a lender to lower interest rates without refi?
I apologize, in advance, if this sounds incredibly stupid.
Because of a promotion, we had to move closer to my husband's work and built at just the wrong time (moved in November 2007). Costs are much higher here than where we had lived previously and our promised raise and bonus fell victim to a company wide wage freeze.
Our new build cost $445,000. We have a 20 year, 6.375 interest rate and put 20% down. I was afraid the house wouldn't appraise out and asked my daughter to nose around as she used to be a head processor for a brokerage firm.
She got back to me and said that it would appraise for around $385,000. She also said that the owner of a loan company told her that there's a law (and this is where it gets stupid) saying that you can go to your mortgage company and demand they lower your rate if you can show your home has lost a lot of its value. He said he did it with Countrywide, (our lender, also). He also said that they will try to do something else but if you stick to your guns, they have to lower it.
Was almost too embarrassed to even write this but if it saves me the humiliation of my husband being thrown out of Countrywide's office when he demands this adjustment, well...