My Experiment

I try to take the weekends off, but I just had a great idea! I was on http://www.thehousingbubbleblog.com/, reading the post on "New Twist Or Is Everyone Pretending," when it hit me. I told you last week about my 5-year ARM at 4.75% and how I plan to refinance. However, with all the media talk of asking your lending institution to freeze your rate, I decided that I'll test it out. After all, I lost a ton of money last year, so my taxes are really going to tank. We just started a new business a few months ago, so we aren't in a position to afford the $580 predicted mortgage increase. I take the responsibility for signing my mortgage loan agreement, but I wonder what it's like to ask for an exception to the rising interest rate.

I have not seen one interview with someone who has successfully negotiated a freeze on rising rates. (If any of you have, please send me the link.) Personally, I don't think it's possible, especially with some of the accurate details about institutions selling their loans on the blog above. My mortgage is with PHH, and they sell very few of the loans that they originate. I'll call them next week and start documenting all of the details of what it takes to make the request to freeze your rate. More than likely, I will have to wait until it is set to adjust in June. If that's the case, I'll let you know, and just wait until then.