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A comment on A Black Hole Engulfing the World's Bond Markets. Parent comment

Re:A Black Hole Engulfing the World's Bond Markets by SilasX on Monday July 29, 2019 @01:54PM (#20557340)
That still feels sleazy and racketish. I can understand doing that when you take on a new customer, but charging you thousands of dollars just to change the exact same loan to one with a different rate? [1]

Reminds me of the time I bought a package at a pawn shop, but didn't want one of the items in it. They said that to get a discount, I'd have to buy the whole thing as is then pawn back the unwanted item. So far, so good, but then I had to give my ID and attest that I didn't steal that one item ... even though they knew it never came from me to begin with!

[1] The way you said it, thousands sound like the typical case and $500 is a special deal.

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Re:A Black Hole Engulfing the World's Bond Markets by toast0 on Monday July 29, 2019 @02:46PM (#20557930)
If you do a full re-fi; the new lender is going to run your credit, do an appraisal of your home, record the new loan on the title, do a title search, purchase title insurance, pay the broker's commission, etc; that all costs money, and that's where the thousands come from.

Just adjusting the rate in their systems certainly doesn't cost the lender nearly $500 or $1000, but it was still a win-win. They got some money to offset the lower rate, and got to keep servicing the loan, and I got to pay less interest, it's been a while, but I seem to recall my break even was about 3 years each time. I would certainly consider the availability and price of rate modification when considering lenders in the future.

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