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Hi Scott,

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.

I've heard from a family member that works at a lender as a loan processor that -
1) She sees these type of loan mods all the time and
2) It does not have to be with the original lender.

Now I'm totally boggled! How would a different lender accept a fee to lower a rate for another lender? I must be missing something in the translation. Fill in the blanks, please?

Dave Donhoff
Lic. Mortgage Broker
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