If my husband is deployed and our mortgage is only in my name is the bank required to reduce my interest rate?
Section 207 of the Servicemembers Civil Relief Act tells us who is protected under the Act - An obligation or liability bearing interest at a rate in excess of six percent per year that is incurred by a servicemember, or the servicemember and the servicemember's spouse jointly, before the servicemember enters military service shall not bear interest at a rate in excess of six percent per year during the period of military service.
Many creditors will review the debt and determine under state rules if the servicemember is actually obligated on the loan, or if the servicemembers obligation to his country effectively impairs that loan because their earnings were commingled before they went on active duty. Relief may be provided in the form of a rate reduction. In the latter example, the law doesn't require relief, but many creditors will do so, as they believe it is within the spirit and intent of the law.
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Section 207 of the Servicemembers Civil Relief Act tells us who is protected under the Act - An obligation or liability bearing interest at a rate in excess of six percent per year that is incurred by a servicemember, or the servicemember and the servicemember's spouse jointly, before the servicemember enters military service shall not bear interest at a rate in excess of six percent per year during the period of military service.