Sanilac Co. Michigan | Nodak63 - 5/6/2021 22:03
I’m honestly a little lost. What do you guys mean “renew”? Even a variable rate mortgage is adjusted as the rates change isn’t it? I was unaware anyone was renewing mortgages out there. I thought you had a fixed or variable rate. Term was set and you picked one or the other.
Well, you can call it a renewal, but more likely, particularly if it's a mortgage loan made in house and not underwritten or intended to be sold on the secondary mortgage market, it's a balloon mortgage. That means it's actually a new mortgage loan with new rates and terms.
As to why this woman's rate was so dramatically increased I can't say positively, but there might be a number of reasons. Could be she's a servicing nightmare and the juice just isn't worth the squeeze at current rates and terms. Could be the dwelling falls outside of the banks lending parameters for residential collateral. Regardless, it's plain the lender wants to be shed of this loan, not withstanding it's collateralization, that's pretty darn clear. |