Posted on: 26th Oct, 2007 09:34 am
If I approach my lender to modify my loan so that it is not an adjustable rate, will this be a re-finance because I do not want to add debt onto my already overpriced mortgage? I do not want to ask them to do anything unless I know what to ask and what ca be expected. Thank you, d. natale
it depends on how your lender handles it so you have to call them.
this is the short and dry answer... the lender is interested in profits. if you are wanting to change a profitable arm mortgage to a less profitable fixed rate they will probably want a fee for this. or charge you a higher rate. the good thing is you can refinance with anyone you want.
depending on what your rate is now and how much you owe, you may be able to refinance with lower closing costs and a slightly higher rate compared to high closing costs and a lower rate. it just depends on your individual situation. it is not always a bad thing to add to the debt if it means more savings to fit your goals. it just depends on what those goals are.
this is the short and dry answer... the lender is interested in profits. if you are wanting to change a profitable arm mortgage to a less profitable fixed rate they will probably want a fee for this. or charge you a higher rate. the good thing is you can refinance with anyone you want.
depending on what your rate is now and how much you owe, you may be able to refinance with lower closing costs and a slightly higher rate compared to high closing costs and a lower rate. it just depends on your individual situation. it is not always a bad thing to add to the debt if it means more savings to fit your goals. it just depends on what those goals are.
Hi Diane,
You may talk to your lender for a loan modification to lower the interest rates.
In such cases of modification, the loan amount as well as the loan term remains the same but the rate of interest is lowered. But not all mortgages can undergo such modifications, there are restrictions to it.
But I am not sure if you can modify an ARM to a fixed rate.
You may talk to your lender for a loan modification to lower the interest rates.
In such cases of modification, the loan amount as well as the loan term remains the same but the rate of interest is lowered. But not all mortgages can undergo such modifications, there are restrictions to it.
But I am not sure if you can modify an ARM to a fixed rate.
