lower mortgage rate

[ripper1]

I just read somewhere where you can ask your mortgage company to lower your rate without refinancing. I mean like no fees whatsoever. Is this true? And has anybody done this? I'm not talking about a recast either.

 

[Mr. Tightwad]

Its called streamlining. I've never done it.

 

[Sunset]

It would never hurt to ask, it's free to ask.

 

[PatSea32]

Its called a loan modification. We did it in 2016, and are talking to the S&L about doing it again. They simply rewrite the note, reducing the interest rate. It cost us about $300, with a payback of less than a year. Don't know if the big banks do it, we are with a small locally owned S&L, and they kept our mortgage.

 

[RetireBy90]

Its called a loan modification. We did it in 2016, and are talking to the S&L about doing it again. They simply rewrite the note, reducing the interest rate. It cost us about $300, with a payback of less than a year. Don't know if the big banks do it, we are with a small locally owned S&L, and they kept our mortgage.

In general, the problem is most banks or mortgage brokers sell to Fanny Mae or Freddy Mac and just take a small profit then take the funds from the sale of your note and make another, again and again. I don’t think you can do this if they sold to them.

 

[Katsmeow]

Never heard of this. I was going to mention recasting but that isn't what you are talking about.

Oh - streamlining -- I thought tat was for refinancing an FHA loan.

 

[rayvt]

Yes, most mortgage places are brokers who sell the loans immediately to Fanny Mae or Freddy Mac. Then the bank you make your payments to are just loan collectors and they don't own the loan. In those cases, your loan was packaged along with a few thousand others into a package and portions were bought by many large investment houses & insurance companies. Yours is just one small bit of the tranche.


So there is no "somebody" who could or would recast your mortgage.
OTOH, I just did a refi with Amerisave, who was the one I got my previous mortgage through. They waived getting a new appraisal, so the paperwork sailed through quickly. Under 2.875% with $0 fee.

 

[tb001]

Our bank offered to go this when we asked about refinancing. The process itself was very simple, but we ended up with a *much* better rate through Costco. We would highly recommend the Costco refinancing program. There was one hiccup at the end because the title company they worked with, but in general, the process was fantastic. Super responsive, low fees and the best rate we found.

 

[Perryinva]

I didn’t even know you could refi through Costco! Thanks! I’ll have a look.

 

[albireo13]

Going through a refi right now with Loan Depot. 2.625% with < $1K down.
Beats our 3.625% mortgage.

 

[RetireBy90]

Going through refi at 2.375% for 15 year with Caliber. I did a refi in 2012 and couldn't believe it was that low (30 year 3.625%) back then. I'll refi again when they start paying me.

 

[captain3d]

I am at month 7 of a complicated refi/cashout/payoff across multiple rentals. Should be done next week. On averaged going from 4.9% to 3.2% on 30 year fixed investment loans.

 

[NgineER]

I am at month 7 of a complicated refi/cashout/payoff across multiple rentals. Should be done next week. On averaged going from 4.9% to 3.2% on 30 year fixed investment loans.

I'm similarly in month 8 for a refi for a rental property going from 5.375% to 3.5% 30 year fixed. This will essentially give me the guaranteed income of another door.

 

[cyber888]

Did 2.99% .. now going for 2.24% 30 years

 

[jazz4cash]

Finally finished refi at Quicken Loans today. The 20 yr rate of 2.75 was way more competitive 4+ months ago when we started the process. I almost jumped ship to get 2.25% from a lender I never heard of. At these rates the reduction in payment for a modest loan is marginal.

 

[Montecfo]

Re-locked my existing loan at 2.74%. Paid $295.