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Seriously considering refinancing now

May 1st, 2010 at 04:45 pm

not for the money but to keep my mortgage funds within the home state

Text is state banks likely to fail in next 12 months and Link is bit.ly/4jar2i
state banks likely to fail in next 12 months October 2009 Puget Sound Business Journal article.

If we did refinance I'd go for the 15 year my credit union is offering, although we'd save a whopping seventeen dollars per month, and it would take us until April 2021 to recoup our refinance costs. At which time the house would be paid off or sold. And heck, if I were wanting to sell, why would I care if my mortgagor was going under?

I'm happy to know that my steady mortgage payments over the past 11 years were not at fault for my bank's dismal return on equity (-37%): I feel no guilt. It's the bank's fault for amassing so many nonperforming real estate construction loans.

Posted in | 5 Comments »

5 Responses to “Seriously considering refinancing now”

  1. zetta Says:
    May 1st, 2010 at 04:58 pm 1272733081
    1272733081

    Why in the world would you go to the expense and trouble of refinancing when there is no finacial benefit to you? I don't see any benefit from keeping it within your state. If the bank that holds your mortgage fails, the regulators will step in and sell the loan to another bank. You terms will remain the same.

  2. PauletteGoddard Says:
    May 1st, 2010 at 05:08 pm 1272733682
    1272733682

    I know what happens when the loan is sold to another bank: paperwork gets lost, data gets compromised and the mortgagee gets screwed: "We have no record of your payment." I sure as @#$! don't want Yank of America owning my loan. I don't want my CHOICE taken away because American banks are greedy dumbasses who can't do risk management.

  3. MonkeyMama Says:
    May 1st, 2010 at 11:10 pm 1272755422
    1272755422

    Actually, it is pretty common for loans to be sold, anyway. I don't think refinancing is a guarantee of anything.

    This is one reason I did like Countrywide - they didn't generally sell their loans when we had them. (7 years?)

    All that said, haven't had any issues with mortgage changing hands a handful of times.





  4. M E 2 Says:
    May 1st, 2010 at 11:44 pm 1272757485
    1272757485



    I had my mortgage thru a bank/company I'd never heard of. I made one payment before Countrywide bought the mortgage. Was with Countrywide for 4 or 5 years until Countrywide was bought out by BoA. I have had no issues/problems with any of the "owners" of my mortgage.

  5. PauletteGoddard Says:
    May 2nd, 2010 at 02:19 am 1272766794
    1272766794

    I'd refinance with my credit union, the second largest state-headquartered financial institution. It probably wouldn't sell my loan, and I know by the interest rates I enjoy on our savings accounts (6%+ on some) that I indirectly benefit from giving the credit union more of my money. I don't see how I would benefit from giving a midcap or greater bank headquartered outside my state my mortgage. My community bank which currently owns my mortgage sponsored quite a few local events and community programs.

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