IF my mortgage co. sells my house to another mortgage Co....can they raise the rates if my former Com. & I agreed to a fixed rate years ago??
NO, that is completely and unequivocally illegal. Transferring the servicing of a loan does nothing to change the agreed upon terms, whether it's interest rate, loan term, or fixed vs. adjustable rate. One item that does come up during servicing transfers is that the new servicer will often do an escrow analysis to determine if enough money is set aside for taxes and insurance. If there is a shortage, you'll be given the option of writing a check for it, or having it added to your monthly payment, typically catching it up over the course of a year. Hope that helps. Ted
The terms of the loan can not change unless both parties agree to a modification. The amount withheld for property tax and home owners insurance may be reviewed at that time or shortly there after.
When a mortgage is sold to another servicer, they will often send out advertisements encouraging you to refinance. You are not under any obligation to refinance and the new lender MUST uphold your original mortgage. These "promotions" are a way for the lender to make more money off the loan by getting you to pay for a refinance. Only consider this if there is more than a .5% interest rate difference.