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Mortgage company proactively reached out wanting to lower my rate
Posted on 12/20/19 at 5:05 pm
Posted on 12/20/19 at 5:05 pm
My mortgage company is saying there is no change to the term on the loan, no change in the loan amount, no upfront costs for the reduction. Just a flat reduction from 4.5 to 4.0. I had them send me the paperwork and it all checks out. My BS meter was going off at first because it just seemed too good to be true, what do they gain out of this? Can anyone in the mortgage industry comment?
This post was edited on 12/20/19 at 5:06 pm
5
Posted on 12/20/19 at 5:10 pm to TigerTatorTots
No change in monthly amount? Are they re-amortizing the payment? Sounds like they may be wrapping a refi fee into the monthly payment..
Posted on 12/20/19 at 5:11 pm to TigerTatorTots
quote:keep you from refinancing with another company.
what do they gain out of this?
Posted on 12/20/19 at 5:13 pm to Shepherd88
Total monthly payment goes down $100 a month. Term stays the same (28 years left)
This post was edited on 12/20/19 at 5:14 pm
Posted on 12/20/19 at 5:13 pm to PearlJam
quote:That was the only thing I could think of but didn't know how common this strategy is
keep you from refinancing with another company.
Posted on 12/20/19 at 5:22 pm to TigerTatorTots
quote:never heard of it. I was just making a guess
didn't know how common this strategy is
Posted on 12/20/19 at 5:29 pm to TigerTatorTots
Mine has also been proactive in trying to refinance. It is for retention purposes. I haven’t gotten around to doing it but I know it’s time to shop around a bit with the current rates
Posted on 12/20/19 at 6:28 pm to TigerTatorTots
I refinanced recently and when the new lender started poking around at my current mortgage I got several calls from my first lender trying to get me to refi with them, but they couldn’t beat the deal I was getting.
It caught me off guard because I’ve never gotten a call from a lender before.
It caught me off guard because I’ve never gotten a call from a lender before.
Posted on 12/20/19 at 7:26 pm to TigerTatorTots
It’s basically your lender doing a streamline refi with some type of drive by appraisal. Your lender is still getting points more than likely, which is why they are trying to do it.
Posted on 12/21/19 at 9:25 am to bubbz
So when they tell me my payment will go down $100/month when the rate goes from 4.5% to 4.0%, perhaps the actual drop is more but they are pocketing the difference as the "points". Does that sound like a possibility?
Posted on 12/21/19 at 10:16 am to TigerTatorTots
Yes, they are pocketing the points. Reach out another company for a refi and your current lender will see the activity on your account (payoff amount) and then come at you with a better deal. At least that is what mine did. I was able to knock 2-3 years off and either keep the same or have a slightly lower payment.
Posted on 12/21/19 at 11:14 am to Bonjourno
I wonder if letting my escrow go negative is another strategy they use to keep people?
Posted on 12/21/19 at 7:23 pm to Hoodatt
quote:Correct, are 30 year rates still under 3.75?
Reach out another company for a refi and your current lender will see the activity on your account (payoff amount) and then come at you with a better deal. At least that is what mine did. I was able to knock 2-3 years off and either keep the same or have a slightly lower payment.
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