Community Chat

[smoochy]

I don't know anyone with expertise in this area and my online searching hasn't produced the specifics I'm looking for. Just tossing this out to see what other homeowners think/ received a packet from my mortgage holder, Citimortgage, offering to "modify" my loan by lowering interest rate from 7.5 to 5.25, which would add about $1000 to the principal balance while lowering my payments by around $167 a month. The cover letter said this is being offered to me because I've been such a good customer, never late, etc. I currently hold a thirty year loan. The new terms as described, show a loan term of 23 more years at the new interest rate. This is tempting because we need some relief on the monthly payment. We aren't in a position to sell right now because our market value is less than what we owe. We are sixty years old and at some point in the next ten years, will probably need to sell, regardless. Credit scores are in high 700s which would get me good loan terms if I shopped around for a refi, however I don't think the appraisal would come in high enough. So Citi's offer to me seems pretty good, just read and sign. What do you think?