my mortgage company thinks i'm stupid

[WolverineDG]

ok, i don't have the world's greatest credit anymore (my fault, bought into all the "buy buy buy" stuff for the past few years), but now i've seen the light. i've used some inheritance money to pay off most of my credit cards & spent some time today gathering info on what i owe, to whom, interest rate, monthly pmt., etc.

sooo, what do i find in my mailbox today? a nifty "re-fi your home & get a new payment that's $200 less than your current payment!!!!" TWO PERCENT??? WOW, THAT SOUNDS REALLY NEAT-O.....oh wait, there's a catch...it's a fixed rate for only 6 months, then it's an adjustable rate...oh really? gosh, gee, um, sorry, think i'll stick with my now lousy 7% FIXED. ::toss offer in trash::

sounds like mortgage interest rates are going to be sneaking back up again really soon.

dg

[AlCzervik]

1. Not you specifically, but they're hoping at least 1 out of 100 are

some poor dumb asshole will sign up for that without reading the fine print.

[ohioliberal]

2. Well get this one!

We were about three months behind on our mortgage, because I haven't had a job in two years, and we were at the first stage of foreclosure, but as soon as we got caught up the offers just kept coming in, they like to prey on us that have lagged behind so they will get a higher rate on us. Our rate is at 6.75%, only because two years ago we had great credit, now it sucks big time and it will take us years to get back on track.

[WolverineDG]

5. i hear you

i'm going to have to be very very good for my credit rating to get better...again, my fault, i wasn't out of work, but overspent. oh well, live & learn.

dg

[mchill]

3. Wolverine...

Why do you have a 7% fixed when you can currently get a 5% plus fixed? Even a 30 year is still in the 5 plus category. I agree, forget variables, unless you plan to move in the next 5 years.

[WolverineDG]

4. it was about 7% when i got my mortgage

& i have no desire to go through that process again, unless i have to move & get another house. not a pleasant experience. i'm just looking forward to them begging me to take out other sucker bet loans so i can be "patriotic" & go shopping. :crazy:

dg

[Kingshakabobo]

6. Fixed is about 5.625% for thirty years.

It's worth the headache if you can save better than a hundred bucks a month. If your balance is over approx 120k you probably save a hundred dollars/mo.

Take it from me,(I'm a mortgage banker) stay away from those short term arms unless you plan on moving soon. A lot of people will be hurtin for certain when rates pop up. Too many people are jumping in to these products to afford more house and keep up with the Jones'.

EO


p.s. bush and his stinky jobless economy has kept rates low for the time being untill deficit spending catches up with us and causes inflation.

[annabanana]

7. ...kind of depends on what State you're in...

SOME palces require that you go through the whole mishegas again, complete with title searches, inspections, lots of misc. fees etc..
You may be better off holding onto a "just ok" rate than investing 4k to get a slightly lower one..

[Kingshakabobo]

8. You are correct. Most states will run you about 1500 bucks

in fees including title so the pay-back is about a year unless you get a deal on fees. The larger the loan the more fees your lender can eat. Just like everything else, the wealthy get to save more money. You can make a better deal on a 300k loan versus a 100k loan.
You know the deal, the rich get richer....

You get hosed in some states by higher title fees. Some states, like New York, even tack on a "mortgage tax" of .75% of the loan amount to the customer and .25% of the loan amount to the bank. This gets passed along in higher rates (usually works out to about .25 to .375% increase in rate if not paid up-front in the form of a point).

[knowbody0]

9. oh yeah?

well my mortgage company's address is 666 walnut avenue