Posted on: 03rd Nov, 2010 10:35 am
Lowering rate on existing loan -- My financial institution holds my mortgage (i.e. it wasn't sold on the secondary market). Why is an entire new loan process, escrow, title, etc. required? Why can't the bank simply lower the interest rate? There is certainly no risk to the bank.
Is there some law that doesn't allow them to keep the existing loan and simply change the interest rate on it? Heck, ARM allow rates to change, so why would there be some law the wouldn't let lenders change the rate on a fixed mortgage if agreed to between borrower and lender?
Is there some law that doesn't allow them to keep the existing loan and simply change the interest rate on it? Heck, ARM allow rates to change, so why would there be some law the wouldn't let lenders change the rate on a fixed mortgage if agreed to between borrower and lender?