My rage only burns with the luminosity of a 1 Watt LED, so I’ll keep this out of the Pit. But I’m mildly irritated at my new mortgate company. Citi recently bought out my mortgage and so far, things have been uneventful. Yesterday, I came home and found an overnight package from the mortgage company. “Well, crap,” thought I, “If they’re going to piss away money on overnight delivery, it’s going to be bad news.”
So I went through a minute or so of very unpleasant foreboding while I opened the package. And…it was an offer to drop my mortgage by a * whopping * 0.1 APR (from 5.85 to 5.75). Apparently, Citi thinks I’m an idiot who’s willing to go through the whole agonizing closing process again to save a very few dollars a month AND reset my financing back to the 30 year mark.
Let’s do the math, shall we? Citi claims that the 0.1 delta will save me $67.00+/month. According to a mortgage calculator I just played with, it’s more like $10.00/month or $5000.00 over the life of the loan. But let’s play their game and assume it’s $800/year. That would be a savings of no more than $24K over a 30 year loan. Well, I’m something like three years into this mortgage so I’ve already paid far more than that just in interest – interest that I would have to pay all over again if I refinanced. Not to mention the closing costs (of which they’d generously pay $500.00 towards).
I repeat, Citi Mortgage thinks I’m an idiot. Thanks, guys. Come back when you’re ready to lower the APR to 4.00. And pay all closing costs. And mow my lawn and paint the garage while you’re at it.