Posted on: 10th Oct, 2012 03:51 pm
Received an offer from Bank of American that as part of the settlement agreement with states, they are offering to modify my loan.
They have offered to modify it from an ARM to a fixed rate, which I am ok with. However, my ARM has recently reset at a lower rate in which they are offering.
Now I realize interests rates will probably go up and I don't want an ARM on my hands that resets higher in the future. However, any people experience this modification offer with Bank of America? Is the interest rate they offer negotiable?
Thanks in advance
They have offered to modify it from an ARM to a fixed rate, which I am ok with. However, my ARM has recently reset at a lower rate in which they are offering.
Now I realize interests rates will probably go up and I don't want an ARM on my hands that resets higher in the future. However, any people experience this modification offer with Bank of America? Is the interest rate they offer negotiable?
Thanks in advance
Hi loanman!
Welcome to forums!
Well, I don't have a personal experience of modifying my loan with Bank of America. However, what I can say is that it is always better to go for a fixed rate mortgage. The rates will remain constant all throughout the loan term. Even if the mortgage interest rates rise in the future, it won't affect your loan.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
Well, I don't have a personal experience of modifying my loan with Bank of America. However, what I can say is that it is always better to go for a fixed rate mortgage. The rates will remain constant all throughout the loan term. Even if the mortgage interest rates rise in the future, it won't affect your loan.
Feel free to ask if you've further queries.
Sussane
Welcome loanman,
You can get in touch with your lender in order to negotiate the interest rates. However, you should note that it will be completely the lender's discretion whether or not he will consider your request.
You can get in touch with your lender in order to negotiate the interest rates. However, you should note that it will be completely the lender's discretion whether or not he will consider your request.
Here the decision to modify your loan depends entirely on your outlook towards future rate of interest as well as your risk tolerance limit. Again, the time up to which you have serviced the loan is also important. Taking all these things into consideration, you have to make the decision.
It is indeed a tough thing to gauge the future movement of the rate of interest. Sometimes, even the experts fail to anticipate this movement correctly. If you want to play safe, the best bet for you is fixed rate mortgage.