Similar to GMAC deal

Okay.... Details?

Seriously---why does anybody even pay their mortgage?

I'm wondering which states are affected. Perhaps they will have information on their website. I guess this is the ammunition needed that the consumer advocacy groups need to move against all of the Banks. I guess they will be working towards short sales for a while as an alternative to get around all of this.

I hope they look at the short sales more now... they have become my absolute worst bank to deal with lately.

OH...my...I had a scare...the other day...over nite FedEx on my door from my lender...Chase...seems they want to offer me a discounted rate....4.5 from a 6%...because I am a responsible borrower! We called ...we took it...no fees...I dont know....maybe a stip on the whole nightmare...

Wow thats awesome. I would love it if USbank offered me that.

Ditty, did you have an ARM that was about to reset downward? This is the first I've heard of a bank in such a rush to reduce someone's interest rate.

Good question - I was just happy for Ms ditty - didn't think about an ulterior motive.

I have actually heard about a number of these. The borrowers are contacted and offered a lower rate - seems absolutely amazing to me, but it seems Chase is doing it regularly around here!

That is nice of them. I have chase, wish they would offer it to me.

I have one with GMAC that was due to roll in about 90 days. I made contact with them and asked for a fixed rate of 5% versus the 5.3875% that was currently in place. I was turned down and was told I made too much money (define too much money). When we got to the roll over date, my rate dropped to 2.875%.......Thank you GMAC.....lol.

Now Bank of America just announced they will be doing the same.

Heck no... no ARM...we were just paying like we should for the past 12+ years...my husband thought it was a catch...but no...I thinking maybe somewere in that bank bail out thing on page...I dont no...maybe on page 10,536 that the banks are to help those out that have done what they originally agreed to do....Like pay their bills...yup....Rose... Im in the midwest too...

I wonder if Chase would like to offer that to me too - I have mine through a State/Local Government Credit Union - ditty, you have my rate beat.

btw - the pic of you on your horse is cool - did Mountain Man take it (I hope that was your pet name for your hubby/boyfriend)

I got a call from my bank too. I am at 5.5, in 5 years with a nice HELOC on top. He offered 4.5, but I don't want to lose the 5 years and I don't want to lose the HELOC. 5.5 is good for me.

It's late and I'm a bit dense myself, but are you saying they want to spread your balance out over 30 more years at a lower rate?

I understand the HELOC - but is that tied into the mortgage or did you ask if you could roll that into your mortgage?

REO agents are being impacted by this decision. I just had to withdraw one of my Chase listings due to this mess.

It was late for me too and probably did not express it well. I just want to pay off my current principal balance under current terms. I have 25 years left, but I am knocking it down a lot faster with additional payments. I might be able to refi to a 15 year and save money or break even in payments, but the HELOC issue remains. The HELOC was given at combined 100% LTV, so I would not be able to replace it under current guidlines. Since I put a large amount down I essentialy got the HELOC to borrow it back to do investments. If I lose that I will not have access to that money any more. That is the main reason I would not refi.

Good move.

Doin'

Just food for thought. Instead of refinancing, take your existing mortgage balance, amortize it over 15 years at current rate, and bingo, instant 15 year mortgage without any refi costs. The plus side to this is, if times get hard, you can always fall back to the 30 year rate.

I must be dead headed today I guess - WTH??

If he is paying extra on the principle when he can, why change. If he changed to 'current' rate and 15, what is to say 30 and the old rate will be a choice later? And how can he get the current 'rate' without refi charges?

Or are you suggesting he just pay extra on his principle each month in the amount the new rate would be at 15, you know, like he is already doing?

I hope that is what you meant - it's beautiful outside and I don't want to have to 'think', I just want to enjoy ~ LOL

Pine.....

You don't touch the existing loan. You just modify your current payment plan to fit a 15 year loan. There is no refi involved. The one thing to check is see if there is a clause in your mortgage about a maximum annual principle reduction. If that doesn't exist, you're good to go. This way, he shaves 10 years off his mortgage, HELOC stays in place, still has the option to fall back on the lower payment, and no refi fees.

So how do you replace the existing rate of his mtg with the "current rate", and not refi as in the bank's offer? You guys in CA really do have a whole different game.

Here, if you want new terms, you get a new contract/loan under current terms and laws.

When I stated current rate, I meant the current rate on the existing mortgage.....not the current rate in today's market...sorry for the confusion......me bad.

Different schools of thought. I don't have an interest in paying off my home.

The HELOC can be taken away at anytime.

Debt is good as long as the borrowed money is cheap enough.

If I am paying out 5% but I can take extra money and instead of making double payments on the loan invest and get 15,20,25 annual return that is what I will do.

To let equity (capital you could deploy)just sit in a property and let inflation eat it alive is not a road to wealth.Especially today where they won't let you tap that equity until a 75% to 80% LTV.

I am watching interest rates closely, as I continue to cling to my HELOC, instead of switching to a fixed rate mortgage. The HELOC gives me the flexibility to occasionally purchase an investment property without jumping through any loan officer's hoops. I am curently paying 3.49%(good); however, it has been as high as 8%(not good) in the past. I pay extra on the principal...at a rate that would pay off the loan faster than doing regular payments on a 30-yr fixed.

Super

That principle worked great for years.....using dead equity to increase wealth. Today, in my market, that wouldn't be such a smart move with some areas still in decline. Most HELOC's in my area were froze in time and just disappeared...I'd be more than happy to see those days come back.

I get it. Just do the math at home and send in the extra principal. Not a bad idea. Thanks

You know essentialy I have been doing something similar to that by tossing extra principal chunks when I can. I try to do at least something extra whenever possible. But if I became more disciplined about it, I could certainly make it work more systematically.


This lower quote box is Super's...I want to pay off my home around the time my kids go to college. That's just a personal plan. My oldest will be college age while I am still making payments, but the others are young enough where I could do it.
I don't think they will be taking away my HELOC anytime soon.
Debt is debt. If you have it you better make it do something for you. Mine is 4.5% I think (the HELOC).

debt is the devil ...




very few can truly manage the beast ...

Have you ever heard "The Devil came down to Georgia?"

It's not just the fiddlers we have his number in this state!

Number - huh, you guys have him on a 'Hot Line'

But I think he resides somewhere on the Left Coast.

Dittos
The federal tax code subsidises debt, so it must be good, written facetiously.
My father told me they used to let you write off interest paid on your CCs.
We got to install microwave ovens
Custom Kitchen delivery
We got to move these refrigerators
We got to move these color TVs
Mamamamoney for nothin'
Chchchchicks for free

Could not have said it any better...

No wonder the Bible describes debt as follow:
The borrower is slave to the lender. When you are in debt to another, you enter into a slave/master relationship with your creditor. (Proverbs 22:7) Unfortunately we had become sort kind of slaves

Proverbs 22:7, exactly the verse that came to mind.

Here is an interesting article for California Agents!!

http://taxdollars.ocregister.com/2010/09/24/attorney-general-halts-gmac-foreclosures/65036/

Im thinking this was a easy loan mod # for them...not that I needed my loan modified...I feel used...