In today's current sagging economy, many homeowners are struggling to make the monthly mortgage payment and stay on top of their expenses. Foreclosures are in almost every neighborhood and plunging property values have made it harder to determine the amount of equity homeowners have.

However, the good news is that banks are more willing than ever to help homeowners avoid foreclosure. One of the ways you can do this is to renegotiate your mortgage. By doing this you may be able to get a lower finance rate as well as change your rate from a high fixed-rate mortgages or adjustable-rate.

In order to qualify, typically You’ll need at least 10 percent equity in your home. You can easily check the value of your home on sites such as Zillow.com and I can provide you with a free and quick estimate of your home’s worth. Today's lenders typically will require that you have a credit score of at least 720 to qualify for good rates.

Lenders are aware of the many fiscal difficulties borrowers have in making their mortgage payments when hardships arise. However, they typically won't volunteer or advertise their help. So if you are struggling to make your payments on time, it is vital that you take the initiative and contact your lender and give them a heads up on your current financial hardship before you miss payments.  Keep in mind that lenders have more incentive than ever to work with you. Plunging property values mean they’re recovering less now on foreclosures. Plus, many that received cash infusions from the U.S. Treasury are under pressure to show that they’re responding to the housing crisis.