Mortgage Renewals

Clients send us mortgage renewal letters all the time.  It’s surprising how banks continue to throw out highball rates on these letters, hoping people will bite.

In one recent case from December 2nd, the bank’s renewal letter offered our client a 5-year fixed rate of 5.59%!

Meanwhile, the bank’s website showed a “Special Offer” rate of 4.29%, for the very same mortgage. 

This is how some banks like to treat existing customers.  This is how they expect to retain client loyalty.

Apparently banks aren’t worried by the fact that people nowadays hunt the web for information voraciously—including mortgage rates.

Banks obviously feel they can make more money by catching people napping.

Well, cmon guys…show customers a modicum of respect.  At least quote the special offer rates you give freely to new customers.

If you happen to be renewing with a bank and you see one of these joke letters, call your bank and ask them why they’re trying to sell you a bad rate.  And don’t buy their “It’s just our standard rate” spiel.  (That’s what they’re trained to say.)

If you do decide to overlook the bank’s tactics and let them quote on your business, give them only one chance. Tell them to provide you their very best terms up front, with no games. 

Then call a mortgage planner and compare the benefits, advice and rates that he/she can offer. 

Reward the one that appears most concerned about your best interests.