Tuesday, March 05, 2013

Goodbye Sovereign

Last year, I ridded myself of Bank of America and it was satisfying. I've been banking with a local credit union and have been very happy with them. For some time, mortgage rates have been very low, at record lows in many instances. My mortgage, which I refinanced after my divorce, was with Sovereign bank (via AAA). At the time I last refinanced, the rate was good but not anywhere near as low as they are now.

While I hated the idea of my rate being higher than the market by as much as it was, I still had not hit break even on the cost of the last refi (though that was more of a necessary process after the divorce and less about rates) and I wasn't sure I wanted to spend the $2500-$3500 up front refi costs as I am less certain about whether I will stay in my home long enough to break even; there are many dangling variables and I didn't want to tie up the cash or worse, risk losing it.

A few months ago, I was using the web site of the credit union I've been banking with since leaving BOA and saw they had a zero closing cost program at a rate considerably lower than my current one. I thought, win-win; lower my rate and leave another "big bank" in the dust - so, I proceeded to move ahead.

Tomorrow morning I'll be closing on that refi and officially saying goodbye to Sovereign; here's what makes it a better goodbye than the already mentioned perks -

Not long before I started this refi process, I received a call from the mortgage department at Sovereign; they thanked me for being a "good customer" and wanted to "help me lower my rate and put more cash in my pocket". The rep went on and on about how much lower their current rates were and how my monthly payment would be lower, and all the usual. I responded, "so nice of you to be looking out for me (super sarcasm), and since you already hold my current mortgage and have done all the relevant legwork when we wrote this mortgage, I guess it will be simple - you'll just rewrite the note to reflect my current balance and a new rate and there'll be no closing costs, right? (I was serious, there is zero reason for them to charge me anything)" Of course, they had a canned response and after a bit of back and forth I told them that I would not be refinancing with them and would now aggressively pursue a refi with anyone else. Bye Sovereign!

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