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.”July 19, 2019 at 5:54 pm MST #232003EchoParticipantStatus: PhysicianPosts: 55Joined: 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.July 19, 2019 at 5:59 pm MST #232005ENT DocParticipantStatus: PhysicianPosts: 3517Joined: 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.
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.
“Never let your sense of morals prevent you from doing what is right.”July 19, 2019 at 7:50 pm MST #232018DreamgiverParticipantStatus: PhysicianPosts: 868Joined: 03/09/2017
Biggest scam is having to pay title insurance again when you refinance
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.”July 20, 2019 at 8:34 am MST #232101
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
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!
Attachments:You must be logged in to view attached files.
“Never let your sense of morals prevent you from doing what is right.”HankModeratorStatus: AttorneyPosts: 1402Joined: 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.
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.”July 25, 2019 at 6:25 am MST #233404