To write a letter asking for a reduction of your mortgage interest rate, you should include information that will explain why you feel your rate should be reduced, such as national average rates.

Because mortgage lenders make money by charging more interest than they pay.

A Loan Modification is a process where the terms of a mortgage are modified outside the original terms of the contract agreed to by the lender and borrower. This could result in:

* reduction in interest rate, or a change from a floating to a fixed rate, or in how the floating rate is computed

* reduction in principal

* reduction in late fees or other penalties

* lengthening of the loan term

* capping the monthly payment to a percentage of household income

* mortgage forbearance program

The lender would see a government sponsored mortgage as less risky and give a lower interest rate due to that reduced risk. The degree of risk and rate reduction would depend on the specifics of the government's sponsorship.

An adjustable rate mortgage calculator would be of interest - and use - to you if you were the owner of an adjustable rate mortgage (a mortgage with a potentially fluxuating rate) or if you were considering the purchase of a home under the contract of an adjustable rate mortgage.