Sound Mortgage Planning Blog

Let me say up front; there’s no magic here. There was a need and we satisfied it.

On June 23^rd a loan officer at a competing bank referred a client to me because he was unable to help them. The client wanted to refinance out of their existing adjustable rate mortgage which was set to reset to current interest rates on August 1^st. This had the potential to dramatically increase their monthly mortgage payment making it unaffordable to the point of having to sell the home or even go into default.

After speaking with the client I learned that PC Bank was the fourth bank they were going to attempt to refinance out of their current mortgage with. That being said, I had to ask what their previous challenges were. They had mentioned that they had low credit scores and that a previous lender they had went to, had used a popular online home valuation website to determine the value of their home. After they found that the website had shown a less than desirable value, they told the client they could not do the loan for them. I assured the client that we use appraisers to determine value and not home value websites. We moved forward with the refinance process.

I have to say, we did not do anything “special” with this client. They fully disclosed their income and assets. They provided a letter of explanation for a previous break in employment and that was about it.

As a result, we lowered their monthly mortgage payment by $91 and possibly saved them from a potential mortgage payment increase due to the resetting of their adjustable rate mortgage.

I guess the “special” thing we did was accomplish refinancing their mortgage, getting them a lower payment and peace of mind, and we listened. We listened to their needs and we followed through with doing what we said we could do. And we did it in 12 business days.

This is a good day.

Take care,

Shawn