Loan Mod Rate Freeze

[Lemme316]

A little over a month ago we got a call from our mortgage company, Saxon Mortgage, telling us they could freeze our interest rate for 5 years. They told us it would cost us nothing and we would still benefit from any rate decreases but our rate won't go above what they freeze it at.

Our rate had just adjusted from 7.23 down to 6.23.

First a bit a back ground. We were actually planning to refinance after we got our credit cards paid off which would raise our credit score up a bit so we could get the best rate we could.We've never so much as been late on any of our bills in the last 10 years. We're not in any kind of financial straights or anything. Quite frankly we're doing better then ever. Our interest rate has been as high as 9.? and we managed that just fine.

SO anyway,when they called I told them to email us a copy of the documents and I'd look them over.
When we got them we notice the freeze rate was @ 7.23.
So I called them back and told them that our interest rate was at 6.23. The guy apologized and said that the docs they were going to mail out would have the 6.23 rate. So I told him when I get them I'll look them over and get back to them.He told us they would need to be notarized and sent back within 5 days with some financial info...
So two days pass and we receive them in the mail and it still has the 7.23 rate. So I call back and he explains that is the rate the computer spits out because that is what we made our last payment at. He goes on to say all it does is freeze our rate so
it won't go above that in the next 5 years same as at the top but if we would like he could take our name off the list and maybe it will come back up in 6 months. So I told him I will have to talk to my wife and think about it. He said something like we have 5 days to ... and to let them know.

So I talked to my wife. We were a little upset they were putting the freeze at 7.23 and not our current rate. Felt somewhat like they were trying to pull a bait and switch. So we decided to just blow them off .

Any way about three weeks pass and we get another copy of the agreement in the mail with a LAST CHANCE cover page still at the 7.23 rate. So once again we just ignore it.

Well over the next few weeks we were getting some calls with an 866 number that showed on the caller ID. We normally don't answer the phone unless we know who it is. Anyway this same number was calling two,three times a day for few weeks so my wife said she was gonna see who it is and what the want.

It was Saxon again wondering if we were interested in this thing.
Well my wife explained we didn't like that they were using our old rate explained we made a payment at our new rate and if they wanted to use that rate we would consider it.After "talking to her boss" they agreed to use our new rate. We told the to send the docs and we'll look them over and if everything is in order we would do it. They told us have them notarized... same as above.

Any way I'm skeptical in nature in the first place. It took us two years to find a house we wanted to buy. We turned down several mortgage companies because we weren't happy with the rate. I shut down our first closing because I didn't like the prepayment penalty.BTW looking back I still feel I could have done better on all fronts but my wife really liked this house.

Anyway docs appear to be fine but I'm wondering if theirs anything I should be worried about.Especially after hearing some nightmare stories on here and other sites.

Is this going to effect our credit because it's a loan modification.Are they going refuse payments like I've read talked about on this site and others.

Why were they so persistent in trying to give us this thing. When asked they said "they are just trying to stem foreclosures which is good for us and them" Which makes sense but we've never had any problems.

Any Helpful info or opinions would be much appreciated.I searched the net a bit but didn't find much on freezes although this a loan modification says :

Loan Modification Agreement
(Providing for Extended Initial Interest Rate Period Before Adjustable Interest Rate Period Begins)


Thanks