B of A ARM

I have a 5 year ARM which is now serviced by B of A (about the 5th Mortgage co to hold the loan). The ARM is se to adjust for the 1st time in a few months.

Current rate is 4.625% based on current libor rates it looks like the rate will be about 3.7% after the adjustment. I have been trying to get B of A to either convert the current loan to a fixed rate at 4.625% or even slightly higher up to 5% for no fees. They say it can't be done. They want to Refinance it for what I think are excessive fees ie 2 pts plus CC to get a 5% 30 year fixed rate. Loan total would be approx $275,000 before any fees or CC.

I have always been current on the loan no late payments Credit at 780+/-. Dont understand way they dontwant to work with me to keep good business. All I am asking them to do is keep my current rate and payments. If they don't my payments are going down because of the adjustment in a few months and they are going to see reduced intrest payments. Plus they will likley losea good customer as soon as I find someone else to Refi.

???????

their loss is your gain.......I just refi-ed a couple who had initially contacted B of A.  They told me that B of A was quoting them 60-90 days to get the job done and a cost structure that was far less favorable than what we could offer them.

Go to the directory here and find a local professional.  I'm sure you'll be able to find a much better deal than what you've been offered.

Russell what is your margin on your ARM?

Have you tried talking to your local BOA loan rep? They may be able to pull some strings a call center LO can't. You can also look at the directory here and find somebody local to help you . I think you would like what they would have to say.

Unless the value of your home is in question, that does seem excessive. Of course, I dont know all the details of your situation, so I cant say for sure . . .

I would definitely second calling someone in the MND directory that works locally. A second opinion certainly cant hurt.

Russell,

Unfortunately, the fact that you have been a good customer and are being proactive often times won't help you with the larger banks.  You are one among many and often times the bank's policy doesn't allow for exceptions, even when they make sense. 

I too recommend finding a professional in your area via the Directory tab above.

Are you guys serious???  or are you just focusing on the 5% with 2 points???  which is excessive, unless there are some details that would cause some LLPA's that Russell is leaving out...

Russell took out a 5 year ARM.  He knowingly took out an adjustable rate mortgage which is scheduled to adjust per the contract he signed.  If he no longer wants to assume the risk of his rate adjusting, a lender is under no obligation to just convert his adjustable rate mortgage contract over to a 30 year fixed mortgage for FREE...are you kidding me???

BofA didn't even originate the loan originally...and by leaving it in an ARM the lender is not subject to the interest rate risk...

I am no means a BofA homer, but largely disagree. 

The rate and point options may be excessive, but not enough info to determine - is it a 2 unit??? is it a condo???, what's the LTV???, is it a High-rise???, is it a Co-Op???, are we looking at MHA with > 95% LTV/CLTV???, is there a 2nd on the property??? - any of those could add to the pricing...

Bottom line, you signed a contract for a variable rate loan.  If you'd no longer want to assume that risk and would like to convert it, then by all means do so.  But no one is going to do work and originate a new loan for free for you.  If you don't want to pay fees, then your loan officer can structure a loan with rebate pricing, meaning you'll be accepting a higher interest rate (which I have done for people recently w/a rate of 5.25% or 5.375% on a 30 year fixed - with a number of assumptions ;) ).

Check out the directory, Russell, get some quotes and take it from there...I guarantee you that no one you talk to is going to give you a rate of 4.625%, waive all the lender-related fees (appraisal, processing, underwriting, flood certification, credit report, tax service lien fee) and pay your title-related fees (title insurance, title agent / settlement fee, recording fee, wire fee, any state/county taxes, courier fee, etc...)

Gary Paetzold:

Have you tried talking to your local BOA loan rep? They may be able to pull some strings a call center LO can't.

out of curiosity, what are you referring to there, Gary???  The turn time to close on the loan???