Q&A: How do I go about getting my mortagage co to reassess my interest rate without charging me fees?

Question by MELANIE G: How do I go about getting my mortagage co to reassess my interest rate without charging me fees?
I have a friend who’s mortgage co “reassessed” her rate to a lower one, and did not charge her any fees for this since it technically wasn’t a refinance. How do I get my mortgage company to help me out like this? I am drowning!

Best answer:

Answer by joveesasha
Go to a mortgage broker, does not need to be your original broker when your interest is higher then the going interest and get it reduced.

Know better? Leave your own answer in the comments!

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8 Responses to Q&A: How do I go about getting my mortagage co to reassess my interest rate without charging me fees?

  1. m2 says:

    wasn’t it wonderful that the rates dropped……

    phone and ask……
    they may….or may not..
    you signed an agreement……….and..even though it is 20 pages of all fine print….it is in there..finances, obligations, etc.

    that being read…….pick up the phone and ask……
    if you switch companies you will be liable for all those surcharges you read and signed in the 20 pages of fine print..

    so ask rather than demand..
    you did sign………..
    so find out via..those “mortgage documents” you signed if your better off elsewhere……..i believe.. 1% of $ 1000 is approximately$ 1 a year (most banks have a mortgage rate online)…so $ 200,000 a 1% rate could be $ 90 a month difference….
    changes to a new bank…you do have to pay all those fees in the “mortgage contract”..

  2. artiststree says:

    The first thing you do is to call them and see what and if they will offer you a rate change. I’ve done it before just over the phone. Also I’ve done it with credit card companies. Just tell them that it’s just too overwhelming and you can’t afford it anymore. Mortgage companies don’t want to repossess houses. The only thing that might affect you is your credit report if it’s bad.

  3. Mary B says:

    You don’t know what type of loan she had, if she had an ARM, and it was set up to be reassessed based on a certain criteria, then she didn’t “get” anything, it was part of the structure of her loan.

    It is very, very rare that a mortgage company is willing to re-negotiate a note, and you usually have to be one of two types of borrowers: Extremely high-end with a high-net worth and excellent credit, or facing foreclosure.

    If you are Joe-down-the-street, they won’t budge. That is how they make money.

  4. liorio1 says:

    If you have a flex interest rate, it will happen automatically. I assume you do not. So realistically here is what you can do: 1. find out if there is a prepayment penalty( usually .25-1.00%) and for what period of time it is in effect( typically 2-3 years). 2. Since the fed dropped rates last week, banks& mortgage cos. should already have it in their pricing, so shop fixed rates, get as many as you can including your mortgage co’s. current offered rate. You can get this data off the internet for each bank/ mortgage co. Make sure you have full details about fees, closing costs etc. 3. Now you go to your mortgage co. armed with this info and see if they will drop the rate and by how much.
    Possible outcomes: A. They will comply, but must rewrite the loan docs to reflect the new rate. This must be sent to dept of state, mortgage guarantor and any taxing authority. Probable charge to you- $ 1000-$ 1500. B. Partial compliance, fees are still the same. C. They turn you down- your alternative is to go to one of those other banks and refinance through them. Hope there are no points up front, but you will pay for assessment of real estate, credit check and closing costs, which you can tack on to principle. Net, your monthly payments will be reduced by 7-8%.

  5. alterfemego says:

    Each company is it’s own business and decide what to charge or not charge. You could ask them to wrap any fee’s into the mortgage amount.

  6. I_Love_McRedneck says:

    Usually lenders will allow you to do this ONCE over the life of the loan. Just call and ask.

  7. matzael says:

    Simply call and ask them. Tell them you’re thinking of refinancing and want to see if they can help you keep your loan with them first. If they don’t want to help you (and often they won’t), then you should look at refinancing with another broker or lender if you’re drowning.
    Obviously another company will have fees of some sort, but they may be able to help you get your mortgage refinanced into better terms than you have currently.

  8. walkinandrockin says:


    Some interesting answers here. Mortgage brokers and lenders all want you to refinance, because they make more money from a new transaction. Seldom does a lender re-issue a lower rate to a person, but it does happen ocassionally.

    I do this service for people. But first, let me tell you – I am a mortgage broker as well. Here’s the deal… as a mortgage broker, I spend a lot of time in the hopes of getting your loan done and approved and then earn a commission paid by either the lender or by you, or a combination of the two. It works well, and is a smooth operation, that is great for most people in most circumstances.

    However, there is a little known secret in lending that sometimes allows for a lender to do almost exactly what you are asking for. However, there is a cost to a lender to do this, and if they are going to earn less money from you, they are not interested in paying their expenses to make less money – they want you to pay for it. This is so elusive and secret that over 95% of the people you would talk to at a mortgage company would have no idea that they even do this. It just is very rare.

    I used to work for a bank where I did these for the bank, and believe me, it is a rare event, and not always easily understood. I do this for a fee to my clients, which is an up-front fee to offset my initial costs and time, as sometimes it simply can’t get done. I get paid whether or not the results are successful – I don’t spend my time for free. The cost is lower than a refinance, but it still costs money to try, whereas you don’t pay for a refinance until it is completed – that is why most who know still refi at the higher cost.

    My fee runs between $ 1000 and $ 1500 and then the lender normally adds another $ 250 – $ 500 on top of that once they approve it. Is it worth $ 1000 – $ 1500 to spend if you don’t even know if it will be successful? For most, the answer is “no” and they spend a bit more for the refi. Could I do the work for less money? Or, even only when it is successful? Not really, because I can’t spend my time without getting paid, otherwise I would go broke.

    I suggest calling the lender if you want and seeing what they say, then refinance your loan with the closing costs rolled into the loan amount if you need a lower rate/payment. If you absolutely must go the other route – I am the only one that I know who does this

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