Posted by pat/WA on 4/26/12 11:57am
Msg #418987

This is a new one

This was a new one on me. Borrower says, "I'm not refinancing my loan I am just getting the interest rate down."

Reply by JPH13/MO on 4/26/12 12:30pm
Msg #418996

Apparently some unscrupulous loan officers are making it seem this way. I know because my cousin who is 69 years old got talked into "just lowering her interest rate" on a loan she had that was 15 years into a 30 year loan. The notary who had her sign the paperwork was a "point and sign" signing agent and did not go thru the paperwork at all with her, so she had no idea until she got the bill for the first payment due that she now had a brand new 30 year loan at a lower rate. Obviously she is not happy, and is back to having hardly any principal coming off the loan each month, and 15 more years of payment. I wish she had talked it thru with me beforehand.

Reply by Christine/OK on 4/27/12 7:57am
Msg #419102

It is truly sad that people deceive the elderly to make a 'buck.' I know it happens, but if they would just think for a nanosecond how they would feel if it was their grandmother that it was happening to . . . Good that we explain at the signings to improve understanding of what they're signing (not just point and sign).

Reply by MW/VA on 4/26/12 1:07pm
Msg #419011

That would be true of a loan mod., but otherwise it's a refi

Maybe some think that "refi's" mean changing the amt. they're borrowing.