Interest Rates

[Dirtychuck]

Has anyone talked to their banks recently regarding interest rates for a refi?

My current interest rate is higher than I'd like to see and was wondering if this might be a good opportunity to lower my interest expense. I made an inquiry to my bank this morning, but haven't received a call back yet.

I'm curious to hear your experience so that I know if my bank is being straight with me or not.

Thanks.

 

[ScottV]

A credit union that I belong to is starting up their commercial lending department and last week they offered me a 15yr commercial mortgage with a 5yr ARM at 5.25%. I'm currently averaging 7.5% through another regional bank. Needless to say, I'm making the switch.

 

[pitzerwm]

Scott, IMO you better really evaluate the ARM, personally, I'd rather know what my total risks are, even it cost me more. I have left money on the table, but I knew there would be no surprises down the road. Enough crap will go wrong, why buy a potential problem.

 

[JMMUSTANG]

I'd take the ARM with a ceiling of 7.50% that way you don't get burned if rates go up.

 

[thoffmanjr]

We were able to get fixed rates on five loans changed to between 4.9% and 5.45% from our current lender and the maturity date stayed the same. They are based on the daily Libor plus 1.7% plus term adjustments. Shopping them should help motivate your lender. Savings ranged from $19k to $488k on the five loans. It was Citizen’s Bank and we are entering a swap agreement with them. Swaps can be risky if rates go down and you want to refinance again. We don’t think there is much chance of that happening.

 

[Dirtychuck]

I love banks... I called my current bank 2 days ago and never received a callback.

So I call again and was able to call and track down the person that I needed to speak with (names and faces at the bank keep changing)... He suggested modifying my existing loan and could drop me down around 6% for less than $500 change fee...

The rate on my existing loan is higher than this. Rate change would pay for modification fee in a few months. I have a small wash and the amount of the loan is relatively small so if I would switch banks for a lower rate, it would be difficult to recoup the additional fees and closing costs.

Good deal?

 

[pitzerwm]

Sounds like it to me

 

[Greg Pack]

Swaps can be risky if rates go down and you want to refinance again. We don’t think there is much chance of that happening.

Tell me about it. I'm stuck in a swap right now. Two years ago I signed a 7.8% note. Pre-payment penalty is right at 25K right now. Not a smart move on my part.

 

[Dubois Laundry/Carwash]

My unsecured credit cards are running between 0% and 4% promotionally.
I pay them agressively during the promotional period. Whenever one gets ready to mature (to 9 or 12% most recently) another is eager to start another promotion to roll-over whatever balance was still outstanding.