My mortgage lender is promoting that with their credit union the loan rates can be modified every year if they drop by 0.25% or more, paying a sub 1000$ fee. This is where we don’t have to go through the refinance process that is costly and time taking. I found reference of the same in the website too. Does anyone have experience going through this? Do anyone know how the amortization changes after rate modifications? website: Jumbo loan rates for ARMs may only be modified during the fixed-rate period. To qualify for a mortgage loan modification the loan must be an existing credit union mortgage portfolio loan with 12-months of on-time payments, LTV at 80% or below at loan origination, and other loan and property requirements, all of which are not listed here.
Yes, many lenders offers 'rate modification' benefit including Bank of America and Patelco Credit Union. However terms can vary a lot by the lender. Ex: Last I checked BofA allows rate modification every time rate drops 0.75% or more and charges $1000. Patelco allows for rate drop as low as 0.25% and charges $500 fees. I haven't used this benefit yet but hope to use it in future. Check with your lender on their terms.
Don’t know answer, can you share the lender? I would assume your payment goes down cos the loan period will be fixed. Therefore your amortization schedule won’t reset Is this arm or fixed? That should answer the question
This is for both arm and fixed. The credit union here in reference is BECU but I am told others offer the same too.