I am refinancing my home in december should i tell my new lender what my current rate is before we negotiate?

Carmina
I have made some informal inquiries into refinancing recently. I have a sub-prime rate, and my 1-year pre-pay penalty is up at the end of December. Its very easy to beat my 10.75% interest rate (I know! But I fought for the 1yr prepay vs. 2yrs), and I really was subprime. Hey, I got my house and I love it! Now my credit scores/history are serveral orders of magnitude better even just in the last year, and I am preparing to refinance. I am asked very quickly what rate I have currently. In any negotiation, withholding this type of information would keep the balance in my favor, kind of like an auction for my rate, but 10.75% is so easily beaten with other bad rates of 8%-9%, that I dont think lenders will try hard enough. Should I not tell until I have their first offer, or will they find out anyway?

Chong
they can find out anyway...by looking at the loan amount..and your monthly payments.it's better you dont say anything...try FHA...they have rates 7.25% and lower for a 30yr fixed with no prepays.you might as well start the paperwork...in case you need to fix your credit or anything!

Carissa
i am a government own bank in new york that does FHA mortgages. FHA mortgages are not credit driven. It goes by any latenesses, Full Doc income meaning you recevie a W-2 and pay stubs and if there is equity in the house less than 97 percent. i would be more than glad to help you with this. im not sure where your located but if you have a decent amount of equity your rate will be in the low 7's. but your situation is def FHA ideal. so if you know someone that is doing that go to them if not i would be glad to help you out.email me at anolfo@mlfcorp.com