Has anybody here went ahead and applied for their mortgage rate to be dropped to 6% IAW SCRA law, having taken out the mortgage AFTER orders start? I'm fully aware that SCRA explicitly states that getting rates dropped is only for depts incurred before started AD orders, but was wondering if anybody has taken a shot at it and just submitted it anyways. I know sometimes banks and places either let things slip through the cracks or do stuff like that anyways out of the goodness of their hearts 😂. IF it was submitted and they actually did lower your rate, but they caught it later, could they come back after you for interest lost in that time? I know it's a real long shot, but for the little effort of writing a letter and submitting your orders it may well be worth it? Thoughts?
Posted by BennytD900
3 Comments
What could go wrong?
(Read the last few paragraphs of the act)
It never hurts to ask them, the worst they can do is say no because the debt wasn’t incurred prior to joining.
Note that the banks and such that do it aren’t “letting it slip through the cracks”, they have a policy in place that allows makes them more lenient than SCRA requires. Your mortgage broker may have something similar, the worst you can do is ask if they do. It’s unlikely, but trust that if they don’t have something they are absolutely going to carefully check the dates and verify you’re eligible before giving your the reduced interest.
I tried this with an Amex personal loan and they dropped my rate to 0% and refunded all my interest payments. I would say that’s probably a once in a lifetime kind of response. Wouldn’t expect any bank to do anything for a home loan though. They wouldn’t be able to sell your loan then.