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Mortgage modification

Home Mortgages and Home Buying Mortgage modification

  • Lordosis Lordosis 
    Participant
    Status: Physician
    Posts: 1860
    Joined: 02/11/2019

    So I approached my bank about a refinance and they told me I can get a rate of 3.375% down from 4.375% but it will cost 8k.
    I said try again.
    Now they tell me it would be cheaper to do a modification. It will cost 1% of the value of the mortgage which is about 300k. Plus a $250 fee. So $3250.
    Anyone heard of a modification?
    Also still seems kind of pricey. It would take 2 years to recoup.
    I asked why the charge is based on the amount and not a flat rate. I have not heard back. Maybe the lawyers need to charge more to write bigger numbers.

    “Never let your sense of morals prevent you from doing what is right.”

    #232003 Reply
    Avatar Echo 
    Participant
    Status: Physician
    Posts: 55
    Joined: 03/09/2016

    My bank let me do a modification about 8 years ago (1 year into the mortgage)for a flat $1500. I made it back in about 8-9 months with the lower interest rate. Rates dropped again and I did it a second time about 15 months later. It worked out for me since we are in the same house.

    #232005 Reply
    ENT Doc ENT Doc 
    Participant
    Status: Physician
    Posts: 3517
    Joined: 01/14/2017

    Why don’t you approach another bank? If they think they’re going to lose the mortgage they may not be so quick to let you walk.

    #232006 Reply
    Liked by Zaphod
    Lordosis Lordosis 
    Participant
    Status: Physician
    Posts: 1860
    Joined: 02/11/2019

    I did. The competing Banks had similar or higher fees and taxes. NYS take a portion of any refinance unless the issuing bank does some paperwork to get around the taxes. I guess banks do not play ball with each other for obvious reasons.

    https://www.brickunderground.com/buy/bricktionary-whats-a-cema

    “Never let your sense of morals prevent you from doing what is right.”

    #232018 Reply
    Dreamgiver Dreamgiver 
    Participant
    Status: Physician
    Posts: 868
    Joined: 03/09/2017

    Biggest scam is having to pay title insurance again when you refinance

    #232041 Reply
    Lordosis Lordosis 
    Participant
    Status: Physician
    Posts: 1860
    Joined: 02/11/2019

    I know. Dealing with this process makes me realize how much I would like to get rid of the mortgage once and for all. But I understand the benefits of leverage so paying over 15 years as quick enough for me.

    “Never let your sense of morals prevent you from doing what is right.”

    #232101 Reply
    Lordosis Lordosis 
    Participant
    Status: Physician
    Posts: 1860
    Joined: 02/11/2019

    Okay here is the best numbers I was able to get after trying around to several banks.  Please help me figure out if it is worth it to proceed.  Seems like it is to me but I would love a second (or third, etc) opinion

    Original mortgage 328000 @4.375% 15 year fixed

    Currently   316000

    Can Modify the rate to [email protected] and keep the term ending at the original 15 year date.

    The cost is $3400.

    I attached the spreadsheet that @ENTDoc made with my info inputted.

    Looks like it would save me several thousand over the life of the loan and increase my cash flow monthly a little bit.

    Any information that I am missing?

    Questions and comments appreciated.

    Thanks for the help!

     

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    “Never let your sense of morals prevent you from doing what is right.”

    #232830 Reply
    Liked by Zaphod
    Hank Hank 
    Moderator
    Status: Attorney
    Posts: 1402
    Joined: 03/27/2017

    I’d do it if I were fairly certain I was going to stay in the house for the next 10-15 years.

    #233389 Reply
    Liked by Lordosis
    Lordosis Lordosis 
    Participant
    Status: Physician
    Posts: 1860
    Joined: 02/11/2019

    I’d do it if I were fairly certain I was going to stay in the house for the next 10-15 years.

    Click to expand…

    Unless something catastrophic happens my next move is to the nursing home.

    “Never let your sense of morals prevent you from doing what is right.”

    #233404 Reply

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