My bank wants to lower my mortgage rate from 5.6 to 4.8
 

My mortgage is with Chase and they sent me an offer to lower my fixed rate from my current 5.6 rate down to 4.8. There are no closing costs and other than the rate change the terms are exactly the same, other than of course I am starting my 30 year loan from the beginning again. I am 4 years into my current loan so if I continue to make the same payment I will pay it off approximately 3.5 years sooner and save about 50k. Is this a no brainer or is there a catch I'm missing. According to Chase it is because I make my payments on time and they don't want me to go somewhere else since rates are going down. Any expert advice?

Are they still offering a fixed rate? Interest rates will go up once the Fed can no longer continue their profligate money printing disaster.

Are their really no costs? So their will be no change in your outstanding mortgage balance on the day of the rate change.

Sometimes banks load fees on the balance so you end up paying the fees off over time with interest.

A refinance just to grab a .8% drop in interest rate? Tell them you want your existing note amended to give you the interest rate and subsequent monthly payment decrease without any adjustment in any other terms, if they treasure your business so much. Just be sure to steel yourself for the possibility that they'll stop returning your calls...

It is a little hard to believe a bank would do something nice and use logic as the explanation. It has been my experience in the past that when rates went down and I was going to refi I would tell my lender and offer to just take a rate reduction and they told me to pound sand. So I refi'd and went somewhere else and they couldn't care less.

I would have a attorney or other expert look at it to make sure there isn't a cobra hidden in there. Might be true though, you never know...

It's a fixed rate. According to what I read and asked my balance will not change. I'm going to look at the good faith estimate of closing costs next week. I'm a skeptic by nature, so I will go over everything with a fine tooth comb. I'm quite familiar with the whole refinance/ mortgage process and from what I can tell this looks legit, yet I would appreciate any input from those in the know.

I'm not sure if I trust attorneys any more than bankers! The basics of disclosure laws are pretty simple- thats one of the reasons I don't have any sypathy for those who claim they were tricked into taking out a mortgage they couldn't afford. That being said- I will still delve deeper into any details I might have missed.

Are their closing costs involved? For a mere 80 basis point reduction the costs would have to be miniscule to make it worth paying any costs, in my opinion.

No closing costs.

If you can keep your payments the same, why not try and re-fi to a 15yr? That's what I did when I refinanced. My payment went up by about $20 and I got a lower rate with a 15yr as opposed to a 30 yr. My house will be paid off in about 8 yrs.

This.

But if it does turn out to be the real deal and you can pay your house off three years sooner, go for it.

I have had the same experience of asking my lender to lower my rate after paying faithfully for some 8-10 years. Asked for a reduction to a rate actually higher than market. They laughed at me. I ended up refinancing with another lender at a lower rate than I had requested. However I did have to pay closing costs.

PS - when I bought this house Jimmy Carter was in the White House and my interest rate was 13.75 %.:eek: Still here after 28 years and not paying nearly as much in interest rate.

I'm surprised you can't get a better deal. I refinanced from 6% down to 4.25% over a year ago. Took 6 months to recoup the points and closing costs. The rest is free money.

Yeah, LOOK Very,Very closely
 

J.P.Morgan/Chase has Generations of Experience in screwing it's Customers.

They are THE most slick of all the Commercial Banks in CONUS.

I'll find it hard to believe ANY "Offer" from them results in benefit to You.

Were you shopping and contacted them or did they cold call you? If the latter is the case, it doesn't pass the smell test. Bankers are nothing but maggots who are smart enough to scheme.

Make sure you do a shop around so you can go back to them with some competitive data.