Found a weird trick to drop my rate without a full refinance

I was sitting at 6.8% on a rental property in Phoenix and every bank wanted $4k in closing costs just to refi. Then my buddy who works at a credit union told me to ask about a "rate modification" instead of a refinance, which is basically just an internal adjustment. Cost me $200 and took 45 minutes on the phone, has anyone else gotten one of these to work?

3 comments

3 Comments

graym491mo ago

Doesn't that just depend on who actually owns the loan, though? Most lenders sold their mortgages off and can't just tweak the rate internally without a wholesale buyback.

noranguyen1mo ago

Wait, does this just work for credit unions or have you gotten a regular bank to do it too? I'd jump on that deal if it's not just a one-off perk for credit union members.

derek_ramirez1mo ago

I heard credit unions keep more of their loans in-house so they can actually do that, regular banks usually sell 'em off.