how to get a lower mortgage rate?

As others stated, FHA, VA, USDA, Freddie & Fannie, all have refinance programs or underwater borrowers. If your loan is not one of those loan products, then you would need to wait till you have sufficient equity to refinance.. As far as a loan modification, very few people who apply actually get approved.. the lender has some pretty specific guidelines when it comes to determining what you would be able to do. the main one is the 31% rule. All monthly income sources from all adult individuals living in the home X 31%= Modified housing payment.. if your payment is higher than this, then a modification might work, however if your payment is already lower than this, then you will be denied.. the problem is that most modification processes require you to be delinquent on your loan before they ever talk to you, and they never tell you about the 31% rule.. you don't find out till 6 months later.. and by then you have already screwed up your credit.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com

How far underwater are you?

FHA, VA, USDA, Fannie Mae and Freddie Mac each have their own options for refinancing underwater borrowers. If your loan falls outside those programs, the only current option is a loan modification with your current lender.

If you have an FHA, VA or USDA loan you still may be able to refinance even if you are underwater and are not eligible for HARP. If not, your only other option would be to try and complete a loan modification with your current lender.

Check with your Lender to see if you qualify for a Loan Modification.