Asking lender for interest rate adjustment

4 Replies

Hi there BP...

I did a search on this topic but could not find any past posts on this. 

Has anyone called up their lender/bank and asked for an interest rate adjustment on a conventional residential loan (agency debt)?  I've heard of fellow investors doing this with their commercial loans with prepaid interest penalties, but I'm not sure if these could be done on conventional loans without refinancing.

If anyone has done this, would be interested in hearing about how you did it and what penalties/fees were involved.

Thanks!

worse thing is they can say NO.. I suspect unless your in default or going to default.. not going to be very easy.

"Has anyone called up their lender/bank and asked for an interest rate adjustment on a conventional residential loan (agency debt)? "

Well, considering that your bank is probably just servicing the debt and threw it over the wall to FNMA/FMAC to slice/dice and put in a portfolio with 10,000 loans sold to investors - Good luck.

I'd focus on your pre-pay (call your servicer for pay-off) and do a re-fi.

Originally posted by @Jason H. :

Hi there BP...

I did a search on this topic but could not find any past posts on this. 

Has anyone called up their lender/bank and asked for an interest rate adjustment on a conventional residential loan (agency debt)?  I've heard of fellow investors doing this with their commercial loans with prepaid interest penalties, but I'm not sure if these could be done on conventional loans without refinancing.

If anyone has done this, would be interested in hearing about how you did it and what penalties/fees were involved.

Thanks!

 It's unlikely to happen on a vanilla residential fannie type loan. They'd be giving up the back-end profits on a refi, for little/no benefit.

You do see/hear about it happening on 2 types of institutional loans.

1) commercial

2) "Jumbo" loans made to high net worth individuals, aka "private clients" and the like.

Thank you all for the feedback...Sounds like a refi is the only option for a conventional loan.