I mentioned on my Facebook page yesterday that we finally may be getting some good news about our mortgage. We bought our house during the real estate boom before the recession so not only did we pay way more than the house is now worth but the interest rate was higher than they are now. For years after the recession i had been calling to look into refinancing options to get our interest rate back down and our mortgage payment reduced. For years they’ve been telling us that in order to do that we’ll have to come to the table with the difference of what we owe and what the house is now worth (in other words, tens of thousands of dollars). Regardless of never missing or being late on a payment and having good credit, the banks just refused to do what I would think would be a simple process of transferring your existing loan into a new loan.
Well, I called the mortgage company yesterday after getting yet another letter in the mail about changes in the laws for home financing and how we may be able to reduce our payment based on new regulations – even if you’re upside down on your mortgage to value. If you own a home I’m sure you get a lot of these too. Many of which are duds or even scams according to our local “Don’t Waste Your Money” news guy. But this was actually from our lender so I called. It looked like it was going to be the same dead end as usual and I was getting really frustrated but then the loan officer found an option where we can basically just transfer our loan balance over into a new loan at the lower rate and a much lower monthly payment. It creates a new 30 year loan but the current loan is less than 10 years old anyway and we’re not planning on keeping this house full term either so that doesn’t really matter to us. We just need some room to breath while we’re waiting to be able to sell this place when the market climbs back up when we wouldn’t be taking such a hit. The other perks are that there would be no high out of pocket closing costs (we actually get a credit) and we would get a free month without a mortgage payment when the paperwork finalizes too. The only thing we needed to qualify for this was a good credit score. Thank God!
All afternoon I kept thinking, “This just can’t be that easy. It can’t be right. There’s got to be a catch”. Isn’t it funny though how you can spend so long (in this case years) arguing the simplicity and logicalness of something only to be told no repeatedly that by the time they come around and start doing it that way and give you a “Yes” you think it’s too good to be true. We are so programmed and controlled that sometimes we don’t even realize it.