Refinance - Have you asked for a better rate and got it?

[disneydreamersx4]

Even if the bank could give us 1/2 to 1 point better rate we would be happier saving more than $140 that they quoted us. Wondering what our chances are? We are scheduled for the appraisal on Monday.
Thanks for any help. I put this on the Community Board too because I'm not sure where to ask and need replies fast.

 

[bdcp]

No and we've questioned rates before. Comparing different companies (credit untions vs mortgage companies). I think most loan officers will tell you that you are welcome to shop around. We've bought 4 houses over the years and had about 10 mortgages (refis and equity) and dealing for the rate isn't an option. The rates are set by the market. Mortgage companies set rates based on a lot of different elements. Some have to do with investors and their expected return. The really low rates you see advertised are usually very limited and have restrictions that most people can't meet (huge down payments, i.e.). Also, the type of loan you have determines the rate and any guaranteed loan is set in concrete usually.

 

[disneydreamersx4]

I was thinking we would not get a better rate, thank you for your reply.

 

[DawnM]

No. We did say we needed X rate in order to make it worth our while, but we were able to find that. That was in Dec. of 2009 when we refinanced and went from a 30 year to a 15.

Dawn

 

[disneydreamersx4]

Dawn, I like your idea to tell them what we were hoping to save, can't hurt! thanks

 

[ssawka]

The other thing to consider is that rates fluctuate on a daily basis, and nothing is final until you actually sign the loan, thus the rate you are quoted in the begining of the refinance process may not be the rate when you go to signing. About the only way to get down the rate is to pay points, and usually there's a maximum for that as well.

 

[Miss SD]

I did, and I got the idea to ask our bank (Wells Fargo) from this board. I refinanced with Wells in June 2009 at 5.375%, which I thought was a little high, but it was lower than our previous rate. Someone here posted that they received a letter from Wells offering them a no-cost refi with a lower rate, presumably to keep their business. So I sent Wells Mortgage an email, got a receptive response, went through the usual paperwork, etc., and got a no-cost refi at 4.5%. We did have to pay an upfront $495 fee, which was refunded to us after closing.

But it seemed like you needed excellent salary and credit histories. The process seemed a lot stricter in just the 18 months or so in between refis. Good luck!

 

[DawnM]

Well, we did go through a broker, so he did have to shop around a bit.

We had a hard refi since DH works in Finance and there was a list of banks we couldn't use as it would be a conflict of interest with his work. That limited us a bit. We weren't able to use Citibank, Wells Fargo, or another big one I can't think of at the moment. B of A was an ok on the list, but they NEVER have the best rate.

So, we ended up with a very small, rather obscure mortgage company, but it worked. We got 4.37% and did pay closing costs (want to say $2K or so????) not including the first month of mortgage or escrow costs.

Dawn

Dawn, I like your idea to tell them what we were hoping to save, can't hurt! thanks

 

[Swimalie]

The other thing to consider is that rates fluctuate on a daily basis, and nothing is final until you actually sign the loan, thus the rate you are quoted in the begining of the refinance process may not be the rate when you go to signing. About the only way to get down the rate is to pay points, and usually there's a maximum for that as well.

There should be a lock-in rate that is usually locked in for 30 or 60 days, maybe different depending on the bank.

 

[ssawka]

There should be a lock-in rate that is usually locked in for 30 or 60 days, maybe different depending on the bank.

That's true, I forgot about the "Lock in", but at most banks that is an "option", which means that if you "lock in" and the rate goes down further, you are not eligible for the lower rate.

 

[lisajl]

My DH just talked to our bank today about it. We are going from 6.5 to 4.5
percent, and taking two years off our loan. We currently have 12 years left.

With the new loan, 10 years!

 

[DawnM]

We were told that if it went lower we could adjust. It actually went UP so we were glad for the lock in rate.

Dawn

That's true, I forgot about the "Lock in", but at most banks that is an "option", which means that if you "lock in" and the rate goes down further, you are not eligible for the lower rate.