Bank offers to lower my rates (unsolicitated)/

The "Bank" likely doesn't actually own your loan, they just "service" it (collect the payments). When rates drop, they figure you are likely to refinance and go elsewhere, so they contact you beforehand to "offer you this great deal". This way they still get to make money in the future servicing your loan, and they also get to make money today by refinancing you loan. Doesn't sound bad to you... right? They have your best interests in might right? WRONG!!! They know you likely won't shop after being called. Their offer is almost NEVER the best in the market. If you want to refinance, call around... You'll get better deals just about everywhere else.

Great question and your concerns are understandable based on the nature of big banks. The major banks are catching a lot of flack for foreclosing on a lot of military owned homes where the main borrower has either served or currrently serving in the military and overseas. The VA made a big stink about this as they should and dubbed the actions by the banks to be unconstitutional. The big banks are trying to repiar the relationship with th VA by offering there exsiting clients a lower rate. The way they can do it without cost is charging you a higher rate to cover the closing costs. Typicall VA 30 years rates range from 4.375% to 4.5%. Sounds like a good deal but I would shop around to a local VA lender and see what they can offer you as well! Thank you for your service to this country and please let me know if you would like to take adavnatge of my homes for heroes loan program-www.homesforheroes.com

hi there: 4.75% rate on a 30 yr fixed no cost is not bad. Your bank would like to earn your business. Is this a refi cash out or the streamline VA IRRRL program they offered? You might have to pay a certain % of the funding fee to VA or can be exempt. You might want to compare Conventional financing vs VA...My bank can offer no closing costs on a conventional also which requires no VA funding fee nor any closing costs fees...I quoted another client no closing cost around 4.75% or so...Any questions, please contact me. (Mike 703 505 5300) NMLS reg #: 754875

The Bank makes money by churning your loan and then securitizing it with Fannie or Freddie. They have hired a crew of Loan Officers to solicit their customers to offer lower rates because the want to retain you as a customer and they want to refinance every deal they can. At some point some of the Big Banks are going to report multi billion dollar profits primarily because of this activity. Here's a basic equation: The bank offers you 4.75% on a VA that will securitize at more than 105, meaning they will make almost $18K on your loan. If we assume a cost of 33% (high estimate) they are makeing almost $12K by churning your loan, multiply that by the million customers they could be calling to do the same thing and you come up with a very nice number for an institution that is being told they have to reduce their banking charges on things like debit card swipe fees. A few phone calls you could find yourself with an offer of 4.375%. It makes sense to refinance. Final thought, your new loan could wind up with the same institution at the end of the day!

The rate they quoted you is high for your mortgage. We are at 4.375% on this same loan. 866-766-1918