Mortgage Question - Negotiation possible?

[blackasthma]

lol...thanks for the update. I've only been out of touch for 3-4 months, but that's a lifetime in sub prime industry...

[SossMan]

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I purchased a townhome last year, and took a subprime (7.5% interest) mortgage to buy it due to some poor credit decisions a few years ago.

According to my documents, I have until the 15th to pay it each month before it is considering 'late' and incur late fees ($100 ish).

I have no problem paying my mortgage every month, however I do wait until the 13th to send in the payment because I have no motivation to send the payment in earlier.

During the past few months, my mortgage company calls me on a few days before the 15th and want to talk to me about 'payment options'.

I am not behind in my payments, I pay more then my mortgage payment is every month to help pay down principal. I think they call me is because a computer flags me as being a 'problem customer'. Most of the time they call me I just point out to them I made my payment that morning. Usually the rep is apologetic and we end the call on a positive note.

My question is this... what kind of options are they going to offer me? Lower interest rate, refinance, etc? Should I even discuss this with them or just keep paying?

I wouldn't mind lowering my rate, but I stupidly took a prepayment penalty for 3 years so refinance does not make sense till 2009.

Just curious.

[/ QUOTE ]

To be quite honest...you probably don't qualify for a better interest rate now. Hell, I have a 780 fico and I probably can't get a better rate than 7.5% right now. Certainly not enough to justify the prepay.

However, call me when it's almost up and I'll hook you up. I own a brokerage in Campbell.

As far as them calling you...they are probably just being careful due to all the late payments in the subprime world, but it doesn't hurt to make sure you aren't actually almost 30 days late because they don't normally call you if you until it's almost 30 days.

I'm sure you would have noticed the monthly late fees though as it seems like you are on the ball.

Good luck.

Andrew
www.stewartsoss.com

[jaydub]

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Hell, I have a 780 fico and I probably can't get a better rate than 7.5% right now. Certainly not enough to justify the prepay.


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Que?

Full doc, non jumbo, 780 fico, are you assuming terrible LTV or has it gotten that bad?

J