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HI Dave

Sorry about the confusion. From what I can remember about the transaction when I did it is that I paid a fee of about $500 to have the note modified in terms of interest rate only. The rate I got at the time was competetive with other re-financing rates at the time. The term of the loan stayed exactly where it was, basically 27 1/2 years, and I was not required to go through any closing procedures, (title search or appraisal).
What my relative had told me was that the lender she was working at was basically the same as above but in some circumstances the lender was paying of the original mortgage and issuing a new one for the identical terms with the lower rate.
I would presume that the new lender would do some sort of credit check on you if you were switching lenders, but what would the risk be to them if they would just be taking over the servicing of the loan. I would think that the lender as long as the note was in order would not mind getting the interest.

Scott
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