With the prime rate dropping, how do I get my current lender to lower my rate on my existing mortgage?

Answers:3   |   LastUpdateAt:2012-10-26 23:05:03  

Asked at 2012-08-20 00:44:04
I've been a very good customer for my mortgage lender : always on time and make prepayments . I'm tired of hearing about the unfortunate people who took too big a loan ( with too risky mortgage products ) that have been left behind , facing foreclosure, and getting all the breaks . Meanwhile, my income does not go as fast as inflation , and my taxes are certainly going to go up to pay the ransom . I want to reduce my speed and save some money .
Answer1nonnaAnswered at 2012-08-26 21:00:16
Variations in the "prime rate" is not cause for your lender to modify your loan . Look into refinancing .
Answer2dwayneAnswered at 2012-08-30 13:30:04
If you have an adjustable rate mtg , then try to refinance . Much depends on when u got the loan , etc. So you are worried about your taxes that pay ransoms ? Are you so worried I will ask you to pay more when the interest rate rises on mortgages ? When U refinance , you will pay a lot of expenses that may not make it worthwhile. Discuss this with your banker . Incidentally , prepayments are worthless unless you are making additional payments MAIN . It's a difference .
Answer3CHEMBOBAnswered at 2012-10-26 23:04:21
My answer depends on the type of mortgage you have . If you have a fixed rate mortgage , the rate does not change during the term of the loan . Remains the same as the day you took it out . If you have an adjustable rate mortgage , usually tied to an index ( such as the prime rate ) and is adjusted up or down on a recurring basis as provided in the mortgage documents (annual, biannual , etc. . ) will not change until the next scheduled adjustment date . MedlinePlus MedlinePlus You may be able to reduce its refinancing rate . It usually involves some closing costs and other expenses , but if you drop the rate of 1-2 percentage points , it might be worth . In doing so , it takes a new mortgage to pay off the old mortgage. MedlinePlus MedlinePlus While the existing mortgage holder may be willing to do a refinance , not only reduces the interest rate on the existing mortgage just because you've been a good customer . Unfortunately , it is people who are severely delayed and can not pay that are more willing to work with them . We are good just get the shaft! MedlinePlus MedlinePlus Good Luck .
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