[null and void]

Chase has made same offer to me. Basically, they will set my ‘new’ mortgage at the same principal, convert it to a 20 year vs. 30, and do so for no closing or other costs. The new interest rate essentially would make the payment unchanged. The only difference (and for the good), the ‘maturity’ would be two years shorter than present. This is the second time they have sent me this offer.

You get no reduction in monthly payments.

What's in it for them? They lose 10 years worth of income, some percentage of the interest income, and get no change in cash flow.

There must be a powerful incentive for them to do this.

[Chunga85]

There must be a powerful incentive for them to do this.

The name calling, spell-checking, death-wishing comments don't bother me a bit.

I'm doing the "All" thing not to generate clicks (advertising is strictly prohibited on Hamlet) but to hopefully warn fellow Freepers to avoid potentially becoming a victim of seemingly "friendly" gestures from TBTF.

[montyspython]

The incentive is to prevent future defaults, the banks are trying to get ahead of the next bust because its more equitable in the long run to keep people in their homes rather than having unmovable properties bleeding their books.

[CT]

I have done some more research. A good place to search is the Clark Howard Show. He discusses Chase and Wells Fargo mortgage re-sets.

If you are familiar with Present Value analysis, the savings are on the back end. In my case a reduction of 2 years principle to mature. So 24 fewer months of cost.