Renegotiating an interest rate?

Fusion · 03-31-2008, 01:39 PM

Hey guys,

I never seek any type of advice from TF in general as I find most "advice" given in a lot of the forums here to be shaky, at best. However, this forum seems to have members that are on a different level so to speak. I have a question about the possibility of renogotiating the interest rate with my mortgage lender. Now, I am in no financial trouble whatsoever and are not behind on any payments but I would love to be able to save a few bucks on my monthly payment. I have looked at the possibility of refinancing but I, along with many other poor souls, purchased a Florida home in early 2006. Needless to say, I don't have the equity available to be able to refinance. My mortgage is a 30 year fixed rate through Citi. Is it even possible to attempt to renogotiate my interest rate without having to refinance? I figured it's worth a shot. Any light shed on this subject would be greatly appreciated.

Mike

Strangeholliday · 03-31-2008, 01:55 PM

Quote:

Originally Posted by Fusion

Hey guys,

I never seek any type of advice from TF in general as I find most "advice" given in a lot of the forums here to be shaky, at best. However, this forum seems to have members that are on a different level so to speak. I have a question about the possibility of renogotiating the interest rate with my mortgage lender. Now, I am in no financial trouble whatsoever and are not behind on any payments but I would love to be able to save a few bucks on my monthly payment. I have looked at the possibility of refinancing but I, along with many other poor souls, purchased a Florida home in early 2006. Needless to say, I don't have the equity available to be able to refinance. My mortgage is a 30 year fixed rate through Citi. Is it even possible to attempt to renogotiate my interest rate without having to refinance? I figured it's worth a shot. Any light shed on this subject would be greatly appreciated.

Mike

most lenders won't modify your loan, unless you can show them a breakdown of your bills, and are at least a month or two late on mortgage payments..

Some banks have streamline refinances however with minimum costs involved. Call your lender and see what they say, But my guess is your shit out of luck until your late a month or two..

corey r. · 03-31-2008, 02:06 PM

Not going to happen....

**Joe** · 03-31-2008, 02:21 PM

Quote:

Originally Posted by corey r.

Not going to happen....

Agreed.

Banks are not "handing out" lower interest rates to anyone who asks for it.

Just about the ONLY way to reduce your rate is to not pay your mortgage for 90 days and allow the foreclosure process to begin. This is where the bank will "seek alternatives" one of which reducing your interest rate.

So you will at this point have a 30 day, 60 day, and 90 day past due for your mortgage on your credit. Thus it will not be worth it.

If you need to "save a few bucks", then you might want to do other things... This one is not going to pan out.

corey r. · 03-31-2008, 02:34 PM

And that not even a guarantee a reduction will occur.

The bank handling your loan doesnt own the loan, they only manage it. The loan gets packaged up and sold to investors around the world. So even if they wanted to give you a reduction, its really not easy.

Fusion · 03-31-2008, 02:43 PM

Thanks for the insight guys. It's very much appreciated.

1Fast AWD · 03-31-2008, 04:22 PM

+1 for above posts. The only way is to either be late or refinance. You really dont need either unless you got a subprime rate when you bought your home and are in the 8's or 9's on the interest rate. Rates are somewhere in the mid 6's right now so if you are somewhere near there anyway, there is no point to even mess with it. Figure even if you have a $300k home and you drop the rate from 7.0 to 6.5, you will only save $100 per month. Figure that and the approx $8k in closing costs to do so, you will have to pay this for 80 months to break even. This just proves the point of not worth it. And dont even think twice about letting your mortgage go late or you will be sorry later. Just my .02 cents.

**TIM TIM TIM** · 03-31-2008, 05:07 PM

I wish I could get mine lower. Every time I Get stuff in the mail that seems legit from fha or the mtg company about lowering the rate, i call and they laugh at me when I tell them my rate

clear · 03-31-2008, 11:37 PM

Me and the wife are refinancing our home. The current interest rate is 6.25 and the new rate will be 4.25, we will be saving $150+ a month and we are dropping the loan from 30 years down to 25.

Call around to different banks if you think you can qualify for a refinance.

nipster · 04-01-2008, 10:09 AM

Quote:

Originally Posted by clear

Me and the wife are refinancing our home. The current interest rate is 6.25 and the new rate will be 4.25, we will be saving $150+ a month and we are dropping the loan from 30 years down to 25.

Call around to different banks if you think you can qualify for a refinance.

how are you getting 4.25, you doing interest only or some gay shit like that?

Strangeholliday · 04-01-2008, 10:25 AM

Quote:

Originally Posted by nipster

how are you getting 4.25, you doing interest only or some gay shit like that?

interest only the rate would be a quarter to a half perfect higher than your typical regular ole fixed rate..

4.25 % is pretty low.. I'm going to go ahead an assume its a hybrid option arm like a fixed 5 yr option arm or maybe a credit union.. But I'm leaning towards the option arm.

but everything sounds about right.. going from a 6.5 at 360 months, to a 4.25 at 300 months with a loan amount around 170ish.. saves around 150.00 bucks a month..

**TIM TIM TIM** · 04-01-2008, 11:36 AM

I wish I had 4.25.. i have 5.75 now

Strangeholliday · 04-01-2008, 11:46 AM

Quote:

Originally Posted by TIM TIM TIM

I wish I had 4.25.. i have 5.75 now

we all wish we had a 4.25. But right now a 30 yr 4.25 % rate doesn't exist.

clear · 04-01-2008, 11:57 AM

Quote:

Originally Posted by Strangeholliday

maybe a credit union

Yea its our local credit union, they have a 90% loan to value for 4.25 and a 100% loan to value for 4.75, we only owe 85% of the value of the house. Also its a 2/1 Arm that cant increase more than 1% ever 2 years and has a cap.

Quote:

Originally Posted by TIM TIM TIM

I wish I had 4.25.. i have 5.75 now

We started with a 5.25, rates moved to 6.25 but are back down to 4.25 now

**Penis** · 04-01-2008, 05:43 PM

I just put someone in a home 95% on a 30yr mtg at 5.25%. He had a 729 mid but still it wasn't hard. I am a bank though so I do have badass rates.

Strangeholliday · 04-01-2008, 05:54 PM

Quote:

Originally Posted by Penis

I just put someone in a home 95% on a 30yr mtg at 5.25%. He had a 729 mid but still it wasn't hard. I am a bank though so I do have badass rates.

a month ago I got 4.875 on a 30 yr fixed.. didn't buy anything down. straight up.. no prepays.. etc..

kapow !

**Penis** · 04-01-2008, 05:56 PM

What was the LTV?

Strangeholliday · 04-01-2008, 06:02 PM

Quote:

Originally Posted by Penis

What was the LTV?

in the 80's.. can't remember exactly.. but it had MI

03-31-2008, 01:39 PM	#1 (permalink)
Fusion Hired Muscle	Renegotiating an interest rate? Hey guys, I never seek any type of advice from TF in general as I find most "advice" given in a lot of the forums here to be shaky, at best. However, this forum seems to have members that are on a different level so to speak. I have a question about the possibility of renogotiating the interest rate with my mortgage lender. Now, I am in no financial trouble whatsoever and are not behind on any payments but I would love to be able to save a few bucks on my monthly payment. I have looked at the possibility of refinancing but I, along with many other poor souls, purchased a Florida home in early 2006. Needless to say, I don't have the equity available to be able to refinance. My mortgage is a 30 year fixed rate through Citi. Is it even possible to attempt to renogotiate my interest rate without having to refinance? I figured it's worth a shot. Any light shed on this subject would be greatly appreciated. Mike

03-31-2008, 02:34 PM	#5 (permalink)
corey r. Family First	And that not even a guarantee a reduction will occur. The bank handling your loan doesnt own the loan, they only manage it. The loan gets packaged up and sold to investors around the world. So even if they wanted to give you a reduction, its really not easy. Last edited by corey r. : 03-31-2008 at 02:37 PM.

03-31-2008, 02:06 PM	#3 (permalink)
corey r. Family First	Not going to happen....

03-31-2008, 02:43 PM	#6 (permalink)
Fusion Hired Muscle	Thanks for the insight guys. It's very much appreciated.

03-31-2008, 04:22 PM	#7 (permalink)
1Fast AWD Registered User	+1 for above posts. The only way is to either be late or refinance. You really dont need either unless you got a subprime rate when you bought your home and are in the 8's or 9's on the interest rate. Rates are somewhere in the mid 6's right now so if you are somewhere near there anyway, there is no point to even mess with it. Figure even if you have a $300k home and you drop the rate from 7.0 to 6.5, you will only save $100 per month. Figure that and the approx $8k in closing costs to do so, you will have to pay this for 80 months to break even. This just proves the point of not worth it. And dont even think twice about letting your mortgage go late or you will be sorry later. Just my .02 cents.

03-31-2008, 05:07 PM	#8 (permalink)
TIM TIM TIM could be worse	I wish I could get mine lower. Every time I Get stuff in the mail that seems legit from fha or the mtg company about lowering the rate, i call and they laugh at me when I tell them my rate

03-31-2008, 11:37 PM	#9 (permalink)
clear Registered User	Me and the wife are refinancing our home. The current interest rate is 6.25 and the new rate will be 4.25, we will be saving $150+ a month and we are dropping the loan from 30 years down to 25. Call around to different banks if you think you can qualify for a refinance.

04-01-2008, 11:36 AM	#12 (permalink)
TIM TIM TIM could be worse	I wish I had 4.25.. i have 5.75 now

04-01-2008, 05:43 PM	#15 (permalink)
Penis Try the soup	I just put someone in a home 95% on a 30yr mtg at 5.25%. He had a 729 mid but still it wasn't hard. I am a bank though so I do have badass rates.

04-01-2008, 05:56 PM	#17 (permalink)
Penis Try the soup	What was the LTV?