I'm all set to pay-off my mortgage early. However, I'm wondering if there's any chance of getting my mortgage lender (Wells Fargo) to accept/offer a discounted payoff. The indication I've gotten from some web searches is that it won't happen. My ability to pay is not compromised, the property is not distressed, and I don't get the sense that the bank is looking to deleverage. Regardless, I figured I'd ask if anyone here has tried such a maneuver.
By paying off my $138,840 balance early, I should save ~$23,778.78 in interest. If the bank were to then turn around and use that cash to issue a new 30 year mortgage at today's higher rates (say, 4.35%), they'd stand to make ~$109,978 in interest on that new loan. That's an additional $86,199.22 in profit for them. Seems quite reasonable that they'd be willing to offer up a lower payoff amount to me in order for them to realize that additional profit.
I'd appreciate getting your thoughts on this. Thanks.
Mike....