Hi there, I was wondering, I currently have two mortages, and 80/20 since I had no down payment. My 80 10 year interest is fixed at 6.125% and my 20 30 year fixed is at 8.25%. I don't want to refinance and pay all closing costs, but could I call my mortgage company and work a better deal with the way the market is. I have a stable job and always pay on time.
2007-09-13 06:01:15 · 12 answers · asked by OZ2003 2 in Business & Finance ➔ Renting & Real Estate
sit tight your not going to get a much better deal anyway!
there is no way your going to get a better rate without buying the rate down anyway! wait a while even if you went with a no closing cost loan you are not going to get a lower rate! fact is it will be higher! so the grass in not greener in todays morket for you be happy its not adjusting up!
2007-09-13 06:33:37 · answer #1 · answered by Anonymous · 1⤊ 0⤋
Hi,
There is no incentive for your lender to give you a better rate -- you are paying the loan on time. They will usually only do a loan modification as a last ditch effort for a house that is going into foreclosure. Also, most lenders bundle and sell off your loan to the secondary market and your payments are handled by a mortgage servicing company.
That being said, you may want to check your note for your second mortgage, make sure there is no prepayment penalty on it and start making extra payments on it to pay it down faster. Or you may check into replacing that second with a HELOC from your local bank if you can get a better rate with no closing costs.
Before doing either one, think about how long you are going to live in that house. If you are planning on moving in the next two years or so, it might not be worth doing. If you are planning on staying for five years or more, it may definitely be worth doing. It is a matter of sitting down and doing the math.
Best of luck to you,
Barbara
www.therealestatebirddog.com
2007-09-13 14:05:40 · answer #2 · answered by realestatebirddog4 2 · 0⤊ 0⤋
It won't happen, and here's why.
The interest rate comes from the Promissory Note you signed. To change the interest rate, there would have to be a new Note, and Satisfaction of the old one. Until that's done, you owe the 8.125.
If the old Note is satisfied, the old Mortgage is Released.
To do what you want to do requires a full refinance, with all the bells, whistles, and closing costs.
I do think that from what you described, you are probably a good candidate for a refi of the 2d mortgage. Not sure you'd want to change the 1st though.
2007-09-13 06:49:41 · answer #3 · answered by open4one 7 · 0⤊ 0⤋
The reason you can't renegotiate the terms of your loan is because of the way your loan is financed.
It is true that your mortgage was bundled w/ a lot of other mortgages into securities that are sold on the open market to investors. If you wanted to change the terms of your loan, the security or securities that support your loan would have to be unraveled and repriced. That simply won't happen. It's much easier to refinance by taking out a new loan and paying off the old loan w/ the proceeds.
2007-09-13 07:37:22 · answer #4 · answered by CMass Stan 6 · 0⤊ 0⤋
Your first mortgage rate is very good. You might be able to refi and get a lower rate on the second one. You will still have to pay some closing costs. You cannot negotiate a better deal on this type of loan and still keep the loan. I would wait. Pay extra on the second one and build equity in the house. When your loan(s) to value on the house gets to 80%. Then you can look at refi both loans into one and see if you get a better deal then.
2007-09-13 07:10:46 · answer #5 · answered by Bob D 6 · 0⤊ 0⤋
It's highly unlikely they will renegotiate the interest rates without a new loan agreement. Why should they? There's nothing in it for them.
Keep in mind that the costs of refinancing existing loans are much, much cheaper than the costs of obtaining a new loan to buy property. There are no transfer taxes to pay, you won't need a full title search or lawyer fees to draw up new deeds of sale. Contact the holder of your first mortgage and find out what they will charge to refinance both loans. You'll be surprised at how much cheaper it is.
2007-09-13 06:09:20 · answer #6 · answered by AnOrdinaryGuy 5 · 0⤊ 0⤋
There's no such thing, you would have to refi. Some lenders will pay the closing cost for you. Although with your current rates and the market I doubt you could find anything better. And 8.25% for a 2nd right now is very low.
2007-09-13 06:25:47 · answer #7 · answered by lepr0kan 5 · 0⤊ 0⤋
You can try, but this will almost never happen.
The reason is your loans were probably bundled with scores or hundreds of similar loans and sold to investors. If they adjusted your loan, by SEC regs they would have to adjust all the loans, and they won't do that.
The one thing you might want to do is see if they would change your 10-year fixed to a 30 year fixed.
2007-09-13 06:22:35 · answer #8 · answered by rlloydevans 4 · 0⤊ 0⤋
No, mortgages aren't like credit cards...you can't negotiate the terms after you sign the legal docments. There are a lot of no closing cost refinance options out there you should look into.
2007-09-13 06:11:58 · answer #9 · answered by Anonymous · 0⤊ 0⤋
I have never heard of a lender doing that. You can refinance now and most lenders are paying the closing costs. You really should not have to pay anything at closing.
2007-09-13 06:07:55 · answer #10 · answered by CT Home Loans 1 · 0⤊ 0⤋