Re-negotiating mortgage interest rate

[gonefishing]

i was reading on redflagdeals.com forum about people who are on a fixed mortgage. they say all you have to do is call the bank and they will lower your interest rate for you with NO penalties. Has anyone done this?

http://www.redflagdeals.com/forums/showthread.php?t=694750

[Super_Geo]

Originally posted by gonefishing
Has anyone done this?

Did you read the whole article? They're not just slashing rates, but making you extend your mortgage at a 'blended' rate.

So say you're currently at 5.25% for the last 2 years of a 5 year mortgage, they'll offer you 5.00% if you re-sign a 5 year mortgage with them now, and the assumption is that if you ride out the last 2 years of your current contract at 5.25% you should be able to re-sign below 5%.

[Xtrema]

^ Bingo.

http://icanhascheezburger.files.wordpress.com/2007/03/its-a-trap.jpg

IMO it's there to prevent you to switch to variable which is currently at prime+0.8% (3.8%) right now.

Most people would rather pay the penalties and switch to this rate. Or in your case, may be ride it out and see what the rate would be in 2 years. Chances are that it's not going anywhere.

[gonefishing]

yah my bad i only read the first couple of pages. Those lousy tricksters!