RE: the bank should 'bend over backwards'...
Originally Posted by Keim
Why should they? Because I am an excellent customer of their's (I have a great credit rating, pay my bills on time, etc) that they could lose to another bank that is willing to treat me better. It's the beauty of competition.
Yes, but it seems you are finding the competition isn't interested in offering a better rate on that size loan w/o significant fees. So free markets rules say your bank does not need to 'bend over backwards' if the competition isn't.
I did make a deal, and I have stuck to it. That deal was for a 30 yr fixed rate loan at 6% with no penalty for early termination. How am I not sticking to it by trying to negotiate a better deal? THey did say early termination was okay in the original contract. Its no different then looking for a job offer, then going back to your current employer and asking them to beat it.
Agreed - my 'you make a deal, you stick to it'
comment was in reference to those Australian style loans. You are
sticking to your deal, because your deal included the option to pre-pay. I'm just having trouble following your idea that the bank should be bending over backwards to offer you a lower rate.
If you find a place willing to give you a good deal, you could always take that to your bank and see if they can better it. At that point, your good history may have enough value for them to do something to keep you. They are probably counting on you having trouble getting a re-fi for $49K, and/or $49K is just too small of an amount for them to spend any time negotiating or to even be on their radar screen.