Question by thetaxi_bo475: How do I get a better Interest Rate on my Mortgage without paying a Refinance Fee?
I have heard that I can get a better rate on my Mortgage without having to pay anything like a refinance fee. I believe it is called remodification of my mortgage or something like that. Is this a rumor or true? I’d like to see if I can stay with my mortgage provider, but lower my rate to save some money.
Answer by Mike
I did a modification of my adjustable rate mortgage to a fixed two years ago, my bank asked for a $ 900 fee.
My brother had a fixed with a much higher rate than prevailing, he called his bank, which was a portfolio lender, not a fannie/freddie lender and asked them for a “re-write” of his two year old loan or he was going to re-fi with another bank. They did the re-write for a $ 500+ appraisal fee.
Go to you banks branch, don’t call the 800 number, and sit down with one of the suits.
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Wells Fargo (i don’t work for them) and a few other lenders have already offered this. They send out a letter saying that you can lower your interest rate with only 2-3 pages of paperwork. Total cost was $ 2 for the Notary Public fee. They only offered this to existing customers who had made payments regularly. The interest rate was not quite as low as a traditional refinance, but it was worth doing. Call and ask.
You can have your fees covered within the tranasaction by taking a higher rate. For example your loan officer can offer you a rate of 3.75% with closing costs of $ 1500 or a rate of 4% with no closing costs.
There’s always going to be fee’s it just a matter of how it’s disclosed to you. Through fees and/or rate is how loan officers earn their commission as many aren’t paid a base salary. Shop around to find the best deal and loan officer that has your best interests in mind.