Refinance Frustrations

by Ryan
(Ridgecrest, CA)

Ask Kate: Refinance Frustrations: Refinancing advice needed. I want to refinance and am annoyed by the bank's run-around. My wife and I are considering refinancing our home we bought last September.

We got a rate at 6.375% and noticed that the Fed continued to drop the prime rate until just a month ago. We thought we would be able to get a great refinance rate but have so far been very frustrated that banks and lending institutions are unwilling to come down on their refinance rates.

As if that wasn't annoying enough, they all seem to be asking at least $2000 to process the paperwork in the refinance process.

We went to an online mortgage directory to see what lenders were currently charging for their rates and they were no cheaper than the local banks in our area. My wife and I have excellent credit scores (780+) and are not sure why we are being given what seems to be the run-around from all these banks.

So, I guess my question is, why do banks and lending institutions charge so much to buy your loan from another lender? Is there any way to get them to lower their fees and still keep their rates low? Ryan

Refinancing Advice For Refinance Frustrations

Dear Ryan, Contrary to popular belief, fed fund rates and best mortgage rates don't always go hand in hand. Mortgage rates are a market driven phenomenon.

Congratulations on a 780 credit score. As you have discovered, great credit makes it easier to borrow money but does not always translate into below market interest rates.

Perhaps you have other reasons to refinance other than a lower interest rate? If not, my refinancing advice is to accept what the market gives regardless of credit score.

To discover how to get the best mortgage rate at the lowest cost, consult Reduce Mortgage Closing Costs and Comparing Mortgage Interest Rates.

Best wishes and good luck,

Ask Kate how to get the best mortgage rates
Ask Kate

Finding Help You Need for Refinancing

Refinancing Advice - Your opportunity to get down to earth refinance nuts and bolts from a mortgage insider.

Having trouble refinancing your mortgage due to fallen property values? Go to Special Edition Making Home Affordable Options.

USDA Rural Home Loan Refinance with no appraisal, no credit report, and no debt-to-income calculations.

Announcing Kate's Mortgage Information Planner - To save money, get your ducks in a row first.

Are you a homeowner trying to decide if Mortgage Refi is worth the cost?

How To Compare Mortgages - Yes it is enough to make anyone want to toss up their hands.

New! Ask Kate's secret to reducing mortgage refinancing costs. Home buyers should read this too!

Real Estate Investor Loans - Three options for investors.

Surprise, it's a barn! Is a Certificate Of Occupancy necessary for your home mortgage refinance?

Refinance With Cash Out - Where is my loan approval?

Save money using My Special Refinance Formula.

Fresh Refinance Ideas - Reasons why and why not to refinance.

Discover my Secrets To Refinancing based on Robin's story

Low Mortgage Payments For Home Owners - Learn how to ask questions and qualify your lender.

Don't be distracted by refinancing lingo. 10 best kept secrets to Low Mortgage Payments.

A collection of Ask Kate Refinancing Questions and Answers II.

A collection of Ask Kate Refinancing Questions and Answers I.

PS What if you could turn YOUR dreams into reality? Now you can. This is MY story of dreams coming true.

Return from Mortgage Advice About Shaky Credit to Get Your Best Mortgage Rate

Click here to add a comment.

You can also ask Kate about your mortgage at Refinancing Advice The Nuts and Bolts.

Recent Articles

  1. Kate's Mortgage Rate Report August 11: Rates Bouncing Like a Ping Pong Ball

    Aug 11, 16 10:49 AM

    Kate's mortgage rate report for the week ending August 11, 2016: Rates Bouncing Like a Ping Pong Ball
    Mortgage interest rates have been bouncing like a ping pong ball: After last Friday's strong job report began pushing up mortgage rates, the market is now hinting at a reversal, with the 30-year hover…

    Read more

  2. Ask Kate how to avoid unauthorized mortgage rate extension fees

    Aug 11, 16 10:18 AM

    Ask Kate how to avoid unauthorized mortgage rate extension fees
    Ask Kate how to avoid unauthorized mortgage rate extension fees:

    After locking in her rate, the bank sent a Texan homeowner, Laura, notification of several thousand in fees that she must pay in order…

    Read more