Possible to call to get mortgage interest reduced?

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Is is possible to call the lender and get your interest rate reduced? We’ve had this loan for about 3 years, never missed a payment. It’s not an ARM, but it IS a high interest rate. It was originally part os an 80/20 loan.

Refinancing in NY is expensive b/c of all the taxes, so I don’t want t do that at this moment. So- can I call up the lender and get the rate reduced- even temporarily?
Please report those two spam answers to yahoo.

My loan is not distressed, but I would like to lower my mortgage rate. A full refinancing is expensive due to all the fees, including the NY tax to record mortgages and title insurance etc. I would like to just amend my existing mortgage with Citibank and thus not have a new mortgage. Does anyone know if you just amend the existing mortgage, do you still need new title searches, insurance etc? It would seem if nothing but the rate changes and the existing mortgage remains in place you would not need all that. Has anyone done this?
ps don’t even know if citi would agree since it just less money to them but I may as well try as I could save quite a bit.

8 Comments
  1. Reply
    65% water
    January 21, 2011 at 1:20 am

    I don’t hold out much hope, but since everything is (hypothetically) negotiable, you’re free to call or write to your mortgage company and ask them for a rate reduction. The only problem I can see is that it’s likely even if they want to help you they won’t be able to because they will have sold your mortgage on to someone else, and then to someone else, etc.

    But there’s no harm in trying, is there?

  2. Reply
    stan c
    January 21, 2011 at 1:26 am

    If you want to reduce the interest rate and you have a fixed rate mortgage, you can always make add’l payments monthly towards the loan. Ask your mortgage co to send you an amortization that will give a break down between the interest and principle. If you have a 30 year mortgage, on the first 15 years, you pay about 70% in interest. That’s how banks make their money up front.

  3. Reply
    TruthMastaT
    January 21, 2011 at 2:00 am

    You’re probably out of luck here. The loan contract carries set interest rates to compensate the lender. Remember it’s not your money; it’s theirs.

    If you have an excellent pay history, then you should look into a refinance with the mortgage company. You WILL have to pay something for a refinance since the mortgage company will have to make the loan decision all over again. The main thing that they will be looking at is whether your property is still worth what it was when you originally purchased it. If the property was worth $ 200,000 and it’s now worth $ 150,000, they’ll have to determine whether you still have enough equity to do a refinance. If you still owe $ 160,000 on a property that is now worth $ 150,000, then you’re out of luck. On the bright side, your property value PROBABLY has NOT decreased in the last 3 years. Nevertheless, you will still have to pay for the property to be re-appraised so the mortgage company can be sure.

    There is ONE possibility (which is very unlikely). SOME mortgage loan products have a “modification” feature. These loans are VERY rare so yours is probably not one of them. A loan like this would give you exactly what you want: a refinance without the cost of additional paperwork, etc. You can check your loan documents (or call your mortgage company), but chances are this is not a possibility.

    I’m assuming you’re concerned about the first mortgage (the “80”; not the “20”). Does the “20” still exist? If you’re referring to the “20” loan, this is probably a Home Equity Line of Credit (HELOC) which has an Interest Rate that adjusts regularly. The “20” loan may require you to make “Interest Only” payments. If you are paying more than “Interest Only” every month, then they may allow you to pay just the interest (which would save you a little money).

    Your best bet is a refinance. Shop around and see what you can find. If you’ve paid down the loan substantially (and if you made a substantial downpayment in the first place), then you might be surprised what you can find.

    There’s no free lunch. No lender is going to let you out of a contract without some compensation.

    Good luck!

  4. Reply
    jlf
    January 21, 2011 at 2:31 am

    Generally, lenders will not “amend” existing loans upon request. Start by asking your lender if it is even feasible.

  5. Reply
    Janet P
    January 21, 2011 at 2:50 am

    LOL Citibank is not going to amend your contract.

  6. Reply
    Alterfemego
    January 21, 2011 at 3:49 am

    As far as I know there is no such thing. You either keep what you have or refinance it.

  7. Reply
    real estate guy
    January 21, 2011 at 4:33 am

    the odds are 0%.

    You want a lower rate? Refinance.

    The only issue is you are too cheap to do this. Sorry.

    HOWEVER, usually with a refin, there are no transfer taxes since you are NOT transferring the property. In fact, many lenders have zero cost refinancing or very low costs – much much less the a purchase.

  8. Reply
    Joanie
    January 21, 2011 at 5:20 am

    I seriously doubt that the bank will “amend” your mortgage (which costs them money and manpower to process) in order for you to be able to pay them less. However…

    Depending on when you bought, you may be able to roll at least some of the costs into the newly re-financed loan, if the house is worth quite a bit more than what you still owe. Talk to your bank, and also talk to a couple of other banks about refinancing. A good rule of thumb is that if you can recoup the cost of refinancing within 2 years (and you plan to stay in the house longer than that), then it is worth it to refinance.

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