Posted by Stamper_WI on 10/13/10 11:15am
Msg #356569

Heads up!

"The Mortgage Bankers Association said Wednesday overall applications rose 14.6 percent from a week earlier, driven by a 21 percent increase in applications to refinance home loans. Applications for loans to purchase homes, however, tumbled 8.5 percent from a week earlier."

When I think to ask, the majority of borrowers lately have told me their lenders approached them about refinancing at a lower rate. I take this to mean the lenders are doing this to keep the loan of "good" borrowers before they are courted by other lenders.
Wonder if the requests for refinancing takes that into account? Refinancing wioth same lender.

Reply by Glenn Strickler on 10/13/10 11:40am
Msg #356576

Yes, I think so. A refi is a refi, isn't it?

Reply by Stamper_WI on 10/13/10 12:36pm
Msg #356583

I'll take it

Reply by Paul2_FL on 10/13/10 1:42pm
Msg #356595

The last three that I did were with the same lender so you may be correct in your assumption.

Reply by MikeC/NY on 10/13/10 5:02pm
Msg #356629

"I take this to mean the lenders are doing this to keep the loan of "good" borrowers before they are courted by other lenders."

With mortgage rates still at historic lows, I think you're probably right about this. Lenders are making preemptive strikes to retain the good loans they have by offering a re-fi at a lower rate. Smart borrowers will shop around anyway, since there may be a better deal as far as fees are concerned....

Unfortunately, those loans not considered "good" are not so lucky - the same banks that are tripping over themselves to offer better rates for a re-fi are refusing to modify loans that are in trouble. I'm sure there's a rationale for that, but I haven't quite figured it out yet.

Reply by Lee/AR on 10/13/10 7:11pm
Msg #356644

Rationale??

They can honestly state that they've reduced the interest rate on X% of all loans. At least, that's my take.