Hamp Loan Modification Approved But Why Is Final Interest Rate Higher than Current Market Rate

by Anonymous

I just got approved for a HAMP loan modification and very gratetful; however, I did notice that the final interest rate is more than the current market rate, which is 4.3 this week.

terms:

2% 1-5
3% 6
4% 7
5% 8-27

Confused. Just checking.

Thanks!


Mortgage Loan Modification Answer:

First of all, congratulations on your loan modification approval!

It is interesting that they did not use the current 30-yr Freddie Mac rates. You should definitely bring it up to the underwriter who authored your loan modification agreement. My understanding is that they are supposed to if it's a HAMP modification.