Discount on Mortgage Payoff? - Posted by Dave T


#1

Posted by John Behle on December 08, 1998 at 19:22:32:

Banks very rarely take any kind of a discount on a good loan, yet they will on bad loans. In this market, they just lose money when you pay them off anyway. If you pay them off on an 8.5% loan, they then have to place the money at today’s lower rates.

It isn’t likely they would even talk to you about a discount. If they were private loans, no problem, but banks don’t get very creative.


#2

Discount on Mortgage Payoff? - Posted by Dave T

Posted by Dave T on December 07, 1998 at 22:12:16:

I have two properties with mortgage balances around $25K. The first mortgage is 8% fixed with 25 years remaining. The second is an 8.25% ARM with 18 years remaining.

I have the cash to payoff one of these mortgages if I so choose. Is it possible to buy my own mortgage at a discount from payoff? What would be the best way to approach the banks about buying my mortgage at a discount?