I’m on Hold to Get Better Mortgage Rate…

I’m on the phone on hold with my primary mortgage company to try to get a better interest rate on my primary mortgage loan, which isn’t bad to begin with, but I’m really interested in getting my primary and secondary mortgage combined, since the secondary mortage rate is higher than I’d like. It may be possible, at least per the first representative I spoke to, without closing costs, to get a better (lower) interest rate on at least my primary mortgage with them.

Right now, banks are swamped with people looking for lower interest rates on their home mortgage loans since people are figuring that their chances of getting a lower rate than what they started out at is good because the Fed has lowered the prime rates so many times now due to the economic conditions. I have been waiting on hold now to talk to an actual mortage loan representative for about fifteen minutes, and was told that due to long hold times I could be on hold for about a total of twenty minutes or so.

Update : I was on hold for a total of twenty seven minutes, only to be told that due to the outstanding principle balances on my two loans, I was not eligible at this time to get a refinanced loan for both of them, because it would have to be considered an FHA loan, and the FHA loans in my area only have a limit of so much, and combining our two principle balances would make that amount too high, making it impossible to make us eligible for that loan.

However, then he looked into just giving us a lower rate on the pre exisiting primary mortgage that we already have with them, since there would be no closing costs and we already had financing through them. He declined that as well though, he didn’t want to say exactly why, but it was something about that it was due to the limit on that loan as well. They did run credit on both of us (see how you can get your free credit score report)My hunch is that they saw we’ve made timely payments, could handle them, so why give us a lower rate when they could still make all that interest off of us!?

I have to admit I’m a little annoyed, because why do these companies send you these preapproval mailings acting like you’re all but approved for new loans to save money, and then make you call and get on the phone with them for forty minutes, only to turn you down for reasons that aren’t totally clear. I have a feeling this was a business decision based on some sort of money making matrix, and we didn’t fit into that matrix. Oh well, I’m going to try again if I get another offer from a different company!