It is still awesome to me when it comes down to renewing a mortgage to realize how often banks try to burden their customers with a higher interest rate in the hope that they are willing to accept their higher market rate, without looking at rates against other lenders. It seems that they have more kinds of customers than I could have imagined. You can get the advantage of renewing your mortgage via many web sources.
You may have experienced this strategy of banks firsthand. The bank mails you an email to renew you a fixed five-year rate mortgage for 5.49 percent. Then you visit their website and discover that they are offering 4.39 percent for a similar mortgage as a teaser to draw in new customers.
Evidently, banks don't seem to be interested in providing their existing customers with the choice that's best for them. They seem to have no need to reward their customers' loyalty with an appropriate offer. It would be reasonable to assume that banks would recognize that it's less costly to keep a customer than to search for the new one and this would motivate them to care for the needs of their existing customers.
In reality, they prefer to offer high-priced interest rates to their current customers, and then try to woo those who aren't when they switch. This is a scandal for me and certainly not a great business decision either.
The client will discover that they were stuck with a high-interest rate and I am not sure that they'll be looking at doing business with this bank in the near future.
If you're in a situation where you need to extend your loan, and you receive one of these rates, contact your bank and keep their feet up to the flame.
You should ask them why they're trying to force you into an unfavorable rate. Don't listen to the explanations they offer regarding their standard rates, and so on. and then call their Bluff.
If you do choose to request an estimate from them, ensure that they are aware that they're only getting one opportunity to provide an estimate, and they must offer you the best price and terms they can give, and without any tricks.