Mortgage - thinking of re-financing ? Check this info...

[rh71]

Saw this little blurb that may help some of you out there looking for a refinance on your mortgage... it's called mortgage modification:

Typically a refinance would involve a new loan application (lots of
paperwork), origination fees, closing costs, long processing time,
possibly points, etc. However, a mortgage modification charges only a
flat fee, and then the interest rate for the loan is modified to the
current market rate, keeping the end date of the loan and the loan
balance the same, but the monthly payment is lowered. I signed only one
paper, and the new rate is effective the next month. The flat rate is an
agreeable $975, instead of the thousands that a typical refinance may
involve. With the lowered monthly payment, I'll make the $975 back in
about 6 months. The catch is that you need to have your current mortgage
with the same financial institution you are trying to get the new
interest rate at.

I had never heard of this before, and was told that not every financial
institution offers it. If you are thinking about a refinance and would like to keep the loan
with your current financial institution, check to see if they offer a
mortgage modification. It really reduced the paperwork and fees for me.

 

[vi edit]

It doesn't appear to be a very common thing among lenders unfortunately

 

[rh71]

I just found out that Wells Fargo is offering free refinance to 6% for a 30-year if you're a current customer. I'm not sure if this is an employee-type discount with my company or available to anyone... but woo-friggin-hoo if it works!

 

[kt]

Yeah, doesn't seem to be a very common thing with lenders. I did my refinance last November, ended up with the same lender but with lower rate and I still have to sign a whole lot of papers.