Many homeowners leave money on the table when they postpone
refinancing their home because they don't have time or
energy to deal with a new round of paperwork. Because so
many lenders act as brokers and sell or trade mortgage
agreements, they often require homeowners to go through the
entire process as if they were new customers.
A handful of smart lenders have decided to do something
about it, to save their customers money while keeping their
business from floating away to competitors. The procedure is
called a "rate modification refinance," and it is so
relatively new that you may have to wade through a few
levels of customer service representatives at your lender to
find someone who can help you.
In a rate modification refinance, a customer can call their
existing mortgage lender and request that their rate be
modified to reflect the best possible rate. When you call
with this request, it helps to monitor the deals that your
lender has been offering to new customers, so you can
compare them to your own existing agreements.
You can find out this information by calling your lender's
general information line and asking for average rates in
your area. Your lender's customer service staff may not be
able to quote you an exact rate, but you should be able to
find someone who can give you a good idea. If you borrowed
money from a storefront bank, you can usually find their
rates posted somewhere in the lobby. Call around to one or
two other reputable lenders in your area to find out what
rates they might offer to refinance your home.
Armed with this valuable information, you can speak with an
account representative and notify them that you have found
refinance deals that would let you drop your interest rate
significantly. Emphasize to your customer service
representative that you have appreciated their service, and
that you wanted to give them a chance to retain your
business by offering a rate modification refinance.
In many cases, an account executive will take down your
information, research your case, and contact you in about
two or three business days with a strong counter offer. A
rate modification refinance usually carries a service fee of
about $500, but saves you significant time, hassle, and
closing costs compared to following through with a full
refinance agreement.
Earl Baker is a writer for DebtConsolidationer.com and RefinanceFinds.com.
For additional articles and an extensive resource for
everything about Debt-Consolidation and Refinance, please visit us at http://www.DebtConsolidationer.com and
http://www.RefinanceFinds.com.