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Here's the situation: Last week, when everything was supposedly still "frozen", I received a Fed EX delivery - you know the important carboard envelope type deal. It was from my existing mortgage company - Citimortgage - offering to extend my current mortgage (in good standing) from about 4 years remaining years to either a 10 year or a 20 year mortgage. Slightly lower interest rate- fixed - NO FEES. I've never been late (Hello-valued customer......")
What do you think this is about? First, why spend time on mortgages that aren't in trouble when there are so many that are? I have not checked to see if there is a prepay penalty. I'm trying to get this paid off ASAP -I'm now retired. If this is legitimate, my payments (10 year) would reduce from $690 to $507. If our economy gets worse, and since my IRA (401K) has gone south - alot - this lower payment might be good - at least until things improve. If I'm able to prepay, then I can just continue sending my current amount and finish up as scheduled.
Thanks Texdav - I have til Wed to respond so tomorrow I'll get more info. I have 4 years left of a 30 year mortgage - obtained in '94. I've worked at getting this paid off - can't ruin it all now!!
4 years left..no brainer here..pay it off. By extending to 10-20 your payment will be lower but think of all the additional interest the bank can get from a trustworthy customer who pays his bills on time.
4 years left..no brainer here..pay it off. By extending to 10-20 your payment will be lower but think of all the additional interest the bank can get from a trustworthy customer who pays his bills on time.
I appeciate your comments - all of you - thanks!! The only reason I even brought this up was they actually paid FED-EX delivery - you know - the truck pulls up and the guy comes to the door. This wasn't regular mail. What a waste of money!! And the only reason I would consider it is this **** mess we're in. I actually had a dream that my 401K was wiped out - no job - lost my house this close to the end. Again, I would only do this as protection - if I had the no penalty early pay-off. I would not keep this mortgage dragging on and on. I can't pay it off right now because that would use up most of my cash and now isn't the time to sell the stock, etc...
Don't let that impress you because from what you have said they recognise a valued customer that has been responsiable. I am sure you will be getting other credit offers since the markets are drying up for those in too much debt.We will be seeing a huge change in interest rates and avialbale credit depending on now credit worthy they think you are in the future.
Happytexan - I think you got it right - today I had a message from the Mort CO - now they've lowered the fixed interst rate from 6.5 to 5.875. Watching the news today, Citibank (I assume Citimorgage is part of that) was given a ton of money to loan out. They want to loan out $$ to anyone that has a good record. Can't beat that rate, especially now.
Oh, congratulations to all tax payers - you are all proud co-owners of lots of banks!!!!!!!!!!!!!!!!!!! I wonder when the next meeting will be so we can start making decisions??
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I wonder when the next meeting will be so we can start making decisions??
