I am sorry your free savings did not meet your expectations!

Too funny.  I wonder where he was during math and or business class when they taught this stuff.

I have actually come across several people who told me the same thing. Its almost like they are afraid to save the money. OR, they think there has to be a catch somewhere. You know the saying, if its too good to be true, it usually is? Well, a lot of people are afraid to make major changes right now- including possible savings on a mortgage.

How far into the original loan were they?  What was the length of the new loan?  Maybe he was just looking at the long term effects, and not the sort term windfall.

Not trying to be critical here but...

1) How long has the client been in the current mortgage?  $150/savings a month may not be savings at all if they have been in the current loan a long time...

2) You NEVER skip a mortgage payment.   It may feel like since mortgages are in arrears, but that money is going somewhere.   Skipping a mortgage payment means the new loan balance is higher than it should be and that payment is being financed as part of the new loan.  The current payment is going to be collected between prepaid interest and the payoff of the old loan.

3) Is the new loan waiving escrows?  How are you funding the escrow account for the client?  Again, either the balance has to be higher or you have to be giving the borrower money out of your SRP/YSP which means they are paying an inflated rate to finance their property taxes.  That money has to come from somewhere.  I've heard of some banks transferring existing escrow balances but that rarely happens...

Please clarify...

I was going to bring up the amortiztion issue as well, but you already clarified that.  I'm glad to hear it worked out for you.

Sounds good to me.  Was there a prepay, was it a short term rate or loan?  Someone tried to pull that on my brother-in-law recently and we sent them packing.

David, Don't get discouraged......Often there is more to the story, although on the surface it really did appear to me that they were making a poor choice.

So glad it worked out in the end.  Joy 

Sounds like they should have gone for that knowing more of the information, I would have. I might have even used the money I saved as a payment against the principal on the first payment I make just to lessen the burden!

Are you kidding me?!?! Lots of homeowners would love a refi with no closing costs to get today's rates!

OMG! I would have jumped on that! We are refi'ing my husbands car, saving $8/mo and cutting a few months off. And I was really happy with that!

Hi David,  I know this senario LOL. My husband is a mortgage broker and he tells me the same stories sometimes.  Its hard to beleive it can be so hard for people to understand sometimes.

Hi David, this is so hard to believe. Wish I had such a choice.      

I'm going with comment #30. Either they really didn't understand what you were saying or they were going with someone else.

Sorry about that . . . but you know the back-story, right?  Their son has a friend in the business who helped and they're going to use the son's buddy . . . who happens to be in Ohio.  HA HA HA

Sounds like they just couldn't understand it, or it was "too good to be true" and the friend probably charged them up the whazoo!

So glad they finally understood how you were helping them and are going to take advantage of this great loan!

Sharon

David;

What is there not to understand.  Maybe they thought you were trying to take advantage of them.  It makes no sense.

Hey David: Who needs to save money in this market anyway?! I sure do! Carrie

Clearly he did not understand or was not serious.