Refinance Frustrations
by Ryan
(Ridgecrest, CA)
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?
Refinancing Advice...Nuts And Bolts
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,
Kate
P.S. Go to my
Best Mortgage Rate Blog, an entertaining source of mortgage information. Subscribe now to the RSS feed.
The information you obtain at this site is not, nor is it intended to be, a substitute for financial, real estate or legal advice. You should consult an attorney, accountant, lender or real estate agent, as applicable, for advice regarding your individual situation.
