Question by carinyosa99: Is it possible to change mortgage companies without refinancing?
Our mortgage was sold to a really crappy company. We have thought of refinancing, but then we realized we have a really good rate for another 18 months (we have a 5 year ARM) and won’t be able to find anything as low as we have now. It’s completely unfair that we don’t have a say in who gets our mortgage. I doubt we can have someone else buy it, but it was worth asking the question.
See my question about filing a complaint against a mortgage company and you’ll see why I hate them.
Answer by kemperk
I understand your concern.
Imagine you pay idiotic
Qwest phone company for phone
service and one day, you get
a notice that they are having
GE commercial handle their
billing; would you care?
NOTE buyers make up an entire
What makes company #2 crappy?
Know better? Leave your own answer in the comments!
Why would it make any difference who you pay your mortgage to? All they do is collect a monthly check from you each month.
You send them a check as per your original contract and that is all the involvement you have with them.
No you may not request a certain mortgage company to purchase your mortgage.
Buying mortgages is an open business and anyone from single investors to multi-national companies purchase them. Even people and companies in China and other countries purchase them.
Even if you refinance your current mortgage, what are you gonna do it the same mortgage company purchase your new mortgage?
I hope this has been of some use to you, good luck.
You should sit tight. Then refinance a year before your arm adjusts. But to answer your question, no not without refinancing.
I would still consider the refinance. Yes you have a good rate for 18 months. But you also need to understand the market. Has your property value increased? If not, you may not be able to refinace now or in the future since you have not paid any principle for the past 3.5 years. Are you 100% sure your not upside down? The other point here is stop thinking about rate. Term is just as important here, maybe more so, rate doesn’t put food on the table, total monthly payments do. Your payments are going to double in 18 months. If you have equity, why not do it now while you can. Yeah, your rate may go up 1 or even 2%, but if you pay the loan off in 15 or 20 years, you’ll save thousands in the end. Also, would you like a bigger check from uncle sam every year. If your rate goes up, you get to write off that interest on your taxes. For example, if you have a 100k mortgage, 5%, 30 yr fixed your total finance charges are 193,255.78. Now, 100k, 6%, 20yr fixed, total financed is 171,943.45. 20k in savings looks good, plus your writing off more interest. Last, don’t get caught in the refi trap. Most people don’t bring closing costs out of pocket to the table, it takes you 2-3 years to pay this off, you never get anywhere unless you change the term or double your payment a couple of times a year. Hope this helps