IF you have a home, Why would you not refinance to a lower rate?

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I am a loan officer for National City Mortgage. One of the largest banks in the US. Our rates are awesome, with no junk fees, or extra costs. SO my question is this, as I speak with home owners, what could be the possible reason for someone to turn down a refinance, if they can get a lower rate and save any where from $ 50-$ 200 a month? I am a bit confused and baffeled, so I figured why not ask some of you to see what your reasons could be to say no?

  1. Reply
    Sherry B
    May 18, 2011 at 12:37 pm

    If your loans are so great, why are you trying to solicit business here?

  2. Reply
    May 18, 2011 at 12:39 pm

    Quit trying to advertise here.

  3. Reply
    May 18, 2011 at 1:03 pm

    To figure out whether it’s in your best interest to refinance, you need to calculate your break-even point.

    The break-even point is the time it takes to make up in monthly savings what you paid in fees. You calculate it by dividing the mortgage fees by the monthly savings. For example, let’s say you would save $ 100 a month by refinancing, and the closing costs would be $ 3,000. Your break-even point is 30 months from now: the $ 3,000 in fees divided by the $ 100 a month in savings.

    In this case, if you expect to continue living in the house for more than two-and-a-half years, you’ll save money in the long run by refinancing. If you plan to sell the house before then, it’s probably best to stick with the mortgage you have.

    How do you figure your monthly savings? You’ll have to get an estimate of the rate you’ll qualify for. A mortgage broker or loan officer can tell you that. Ask the loan officer, or consult a mortgage calculator, to determine what your principal and interest would be with the new loan. Look at your payment coupon to find out what your current monthly principal and interest are. Now you can figure out how much you would save every month.

    You don’t have to start over with a 30-year payment plan, by the way. Let’s say you got a 30-year fixed three years ago, and you want to refinance now, but still pay off the loan 27 years from now. That’s known as amortizing the loan over 27 years.

  4. Reply
    May 18, 2011 at 2:00 pm

    This offer sounds too good to be true. I don’t know anything about your company. You say it’s one of the largest banks in the US but that doesn’t seem to be true. If it were then I think more people would be familiar with it. Of course maybe it’s where I am located. New England.
    Most people want to save money but it usually costs money to save money. (fees to refinance, title search, recording deed of trust, etc.)

  5. Reply
    May 18, 2011 at 2:41 pm

    $ 200 is a significant amount i would go for it unless i have less than 15 years to pay off my old loan because i don’t want to lengthen my payment period.I would be very skeptical of the bank too most of the times banks[lenders] have hidden charges and it is not easy to spot those unless you are a CPA

  6. Reply
    David V
    May 18, 2011 at 3:28 pm

    Maybe there are prepayment penalties in their current mortgage or in your mortgages.
    Maybe your loan terms aren’t that great.
    Maybe your fees are too high.
    Maybe they are waiting to see if interests rates are going down
    Maybe they owe too much and can’t refinance the whole note.

  7. Reply
    May 18, 2011 at 4:23 pm

    Even here you do not sound reputable. It sounds like you may be cold calling, and decent companies do not have to cold call.

    I would not risk my credit and identity to even talk to you to only save 200 a month.

    I only work with people who meet with me face to face. The fact that you do not sound trustworthy would make me say “no”. Next I would report you for calling me, I report 2-3 a week.

  8. Reply
    May 18, 2011 at 4:58 pm

    Their are several reasons.

    Your industry has been tainted with scandals. You personaly may have had nothing to do with this, but you do have to bear the consequences of this.

    The person could be shopping around.

    The person could be very scared of change.

    The loan may not last that much longer. Maybe they don’t want to add the new closing costs to the loan, despite the lower payments.

    They could be waiting for a further drop.

  9. Reply
    May 18, 2011 at 5:49 pm

    If it is truley better and people don’t do it is because who ever is making the offer to them doesn’t seem credible.

  10. Reply
    May 18, 2011 at 6:17 pm

    It’s very simple. Your concept of ‘saving’ is faulted. A lowered monthly payment is NOT saving, unless the net total cash outlay is less than what the borrower is now facing.

    A quick example. If I refinance my $ 300K house at a lower monthly payment, what am I ‘saving’ if the payments extend for another ten years ?

    Get out your calculator.

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