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URL:  http://boards.fool.com/dwdonhoff-ltltltltlthave-you-ever-heard-14808316.aspx

Subject:  Re: Refinancing without paying points? Date:  4/20/2001  1:13 PM
Author:  JAFO31 Number:  19410 of 128686

Dwdonhoff:

<<<<<Have you ever heard of the refinancing term extension modification. About 10 years ago I simply bought down the rate on my existing mortgage with a flat fee of around $500. The rate at the time went from 10.25% to around 8%, and nothing else about the note changed. Do you know of any lenders that are still doing that?>>>>

"I must admit I'm not familiar with any lenders currently offering this type of process, however it sounds like it's probably a non-conforming B-C Loan kind of trick... and when you get into that arena it's a wild-assed wild, wild west place where pretty much anything goes. Rates are higher to cover the risks to the lenders, but terms are all over the board."

Dave could well be correct. OTOH, I see this kind of modifcation in comercial loans. It could work for a portfolio lender, or if the loan was individually owned (even if not by the original lender), but it would not work for any loan that had been packaged into a CMO or not work well in the typical loan servicing arrangement.

Regards, JAFO





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