Can you take a 10 year ballon 2nd loan with 20 year amortization against the equity you have and use the proceeds to buy the new property and pay off the 1st lien on the current property? 2nd mortgages typically have little to no fees or closing cost.

Thanks guys. I may recontact my bank and bring up the term "recast" with them.

TXjim, I will ponder that. I like the creative thinking.

We own a piece of RE worth what I want to borrow.
Are there private parties willing to loan cash for the interest if guaranteed by an asset?

quote:

Originally posted by ffips:
In my opinion, the lender has ZERO motivation to adjust the terms of the agreement. If as a borrower, you desire different terms, it is your option to complete one transaction and enter another.


Edited to add:

It would also potentially depend on the terms of the loan. Are there prepayment penalties etc.?
The lender went into it expecting $X over a certain amount of time. Unless the proposed changes get them back to $X or $X+, what motivation do they have?

This!!

I was able to re-amortize my loan. Had over paid was given the option to lower payments and pay more or keep original payments and pay off sooner.

I did both since re-amortizing the loan was free. Now I pay the same mortgage, but have lower minimum payment. If I hit rough times I can drop $150 per month lower if I want.

Skins, that is what prompted me to ask the question. Another local institution I talked to said the same thing about their service. Which I thought was kind of neat.

And to you elk and the others. Their motivation would be that they get more $ (interest) as the loan gets extend to the original agreed upon term of (15 years)

My bank just sent me a letter out of the blue. I will warn you in my case it means paying an extra $50,000 in interest over the course of the loan. So I wouldn't recommend it unless you plan on over paying it like I am, only using the lower amount of I became ill or lost my job.

quote:

Originally posted by old rugged cross:
Lets say you have a 15year mortgage with a payment of $1000 month. Lets say you are 5 years into it. Lets say by making extra principal payments you have knocked the remaining payoff term from 10 years to 5 by making those extra payments.

What are the chances of going to the bank and asking to lower the monthly payment so that the payoff term will go back up to the 10 year.

I know it could be refinanced. Just wondering if they would be interested or willing to readjust the payment amount to simply extend the payoff period.

What are the chances, zero or maybe or yeah, they should do that?

Here's what I know from experience: yes, you can. Not technically based on how you worded your question but yes, based on the results you intend to happen.

Here's my experience, sometime two years ago after having refinances a year before that, I was going online checking mortgage refinance rates. I think I put in my info on Quicken loans site. Yes, I was getting some calls which I turned down. But, after a couple of days, my own bank called me. I put in the story about Quicken loans because I suspected my bank has a contract with Quicken that flags my bank if any of their customers show up asking for quotes.

My bank offered to refinance my mortgage at a lower rate at zero costs to me.

So, yes, you can go to your bank and ask if they would refinance your house at zero cost to you. I think they realize that the implied alternative is that you would go to a different bank and they would much rather keep your business.

The only question is whether they have a 10 year plan. I don't know why they shouldn't.

Bottom line is I think you have excellent chances.

They won't "readjust the payment to extend the payoff period" because they don't have a process for that. You have to work with the processes they have in place which is refi at zero costs. Sort of like Jack Nichols when he ordered the chicken salad sandwich but hold the chicken.

It may also be worth talking with a mortgage broker. Depending on your current interest rate, it may be possible to do a no-cost refi and achieve what you are looking for. You may end up with a different lender, but if yours won’t cooperate... Also, if you have an offer in hand and your bank’s choices are work with you or lose your business, they *may* look at things differently. They may not. Some banks are too ossified to do anything that doesn’t come straight out of their playbook, but some aren’t...