Mortgage Questions

[Anonymous]

Hello all,

Our ARM loan is going to reset in June, the early payment penalty expires on April 18th. The mortgage company is pushing to pay it off now saying they are afraid that they wont be able to get a loan in this area in another month.  We've stuck out these horrible last 2 years so we could avoid the payment penalty so this is some hard news to get right at the end of the finish line.  We don't anything for closing cost on the new loan or down payment. Our scores are about the same, his are a little better though. Any advice would be welcome.. anyone recommend a different mortgage person in the Tucson area or is it likely they will all have the same bad news?

Thanks in advance!

[ShanetheMortgageMan]

I would inquire with your lender about doing a loan modification to extend the fixed rate period on your loan out further, might even be able to get a lower interest rate while you are at it.  If the customer service department is of no help, I'd ask to be transferred to the loss mitigation department.

[Anonymous]

Have you tried refinancing with your existing lender and negotiating the prepayment penalty? I've had people do that (I'm an escrow officer), and often the lender is willing to work with them to keep them as a customer. I would think this would be particularly true in your case, since you are so close to the prepayment penalty dropping off anyway.