Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
So it's been an adventure with my curent refinance and I signed my docs last Friday, but am tempting to back out ... would like your opinions on if I'm over reacting
Short Story:
- I was told my re-fi would be a 30yr fixed rate for 4% and no cost. No Impound account. Found on Zillow search and provided the best rates for my situation. Property in California.
- My real estate taxes have all been paid off for the year.
- Fast Forward to last Friday, my closing docs came and I signed them.
- There was a typo in the disclosures that needs to be fixed (about my personal info), but on top of that the cash from borrower came to $2500 - $2800 depending on which of the documents you look at (Closing Disclosure vs Estimated Refinance Statement). Oh, and wiring instructions were not provided.
- Earlier communication from the mortgage broker stated that he "gave his word" that he would refund any money I had to pay at closing back after closing so that it will be a true no cost loan to me.
I have until Tuesday Midnight to cancel the transaction outright. I do not feel right with this broker's "word", and not knowing exactly how much I need to pay, and no wiring instructions has my spidy senses tingling.
I have already paid $500 of my own money for the appraisal and credit check fee. I guess if I cancel, I'll be out that much money.
Am I over reacting forum folks? If there is any additional info required to help you help me come to a logical conclusion, please let me know.
I do have a back-up mortgage broker that comes with plenty of positive referrals from friends that is willing to help me re-finance, but is cautiously staying away from providing me any advice on whether to cancel my current re-finance.
So it's been an adventure with my curent refinance and I signed my docs last Friday, but am tempting to back out ... would like your opinions on if I'm over reacting
Short Story:
- I was told my re-fi would be a 30yr fixed rate for 4% and no cost. No Impound account. Found on Zillow search and provided the best rates for my situation. Property in California.
- My real estate taxes have all been paid off for the year.
- Fast Forward to last Friday, my closing docs came and I signed them.
- There was a typo in the disclosures that needs to be fixed (about my personal info), but on top of that the cash from borrower came to $2500 - $2800 depending on which of the documents you look at (Closing Disclosure vs Estimated Refinance Statement). Oh, and wiring instructions were not provided.
- Earlier communication from the mortgage broker stated that he "gave his word" that he would refund any money I had to pay at closing back after closing so that it will be a true no cost loan to me.
I have until Tuesday Midnight to cancel the transaction outright. I do not feel right with this broker's "word", and not knowing exactly how much I need to pay, and no wiring instructions has my spidy senses tingling.
I have already paid $500 of my own money for the appraisal and credit check fee. I guess if I cancel, I'll be out that much money.
Am I over reacting forum folks? If there is any additional info required to help you help me come to a logical conclusion, please let me know.
I do have a back-up mortgage broker that comes with plenty of positive referrals from friends that is willing to help me re-finance, but is cautiously staying away from providing me any advice on whether to cancel my current re-finance.
Do you also have a right to recision period?
If you're in the 3-day CD waiting period, no problem to cancel. couldn't you just get things corrected, with wiring instructions, and the right amounts, and have the CD updated? Seems fishy.
So it's been an adventure with my curent refinance and I signed my docs last Friday, but am tempting to back out ... would like your opinions on if I'm over reacting
Short Story:
- I was told my re-fi would be a 30yr fixed rate for 4% and no cost. No Impound account. Found on Zillow search and provided the best rates for my situation. Property in California.
- My real estate taxes have all been paid off for the year.
- Fast Forward to last Friday, my closing docs came and I signed them.
- There was a typo in the disclosures that needs to be fixed (about my personal info), but on top of that the cash from borrower came to $2500 - $2800 depending on which of the documents you look at (Closing Disclosure vs Estimated Refinance Statement). Oh, and wiring instructions were not provided.
- Earlier communication from the mortgage broker stated that he "gave his word" that he would refund any money I had to pay at closing back after closing so that it will be a true no cost loan to me.
I have until Tuesday Midnight to cancel the transaction outright. I do not feel right with this broker's "word", and not knowing exactly how much I need to pay, and no wiring instructions has my spidy senses tingling.
I have already paid $500 of my own money for the appraisal and credit check fee. I guess if I cancel, I'll be out that much money.
Am I over reacting forum folks? If there is any additional info required to help you help me come to a logical conclusion, please let me know.
I do have a back-up mortgage broker that comes with plenty of positive referrals from friends that is willing to help me re-finance, but is cautiously staying away from providing me any advice on whether to cancel my current re-finance.
Was your payoff on your current loan more than the new loan amount? "No cost" does not necessarily equate to no cash needed to close.
The final document that shows how much cash needed to close or how much cash back to borrower is called the Closing Disclosure (CD). The bottom of page 1 of the CD will say how much cash is needed to close. Sounds like you are not closing at a title company? Just a mobile notary?
fyi-I believe if you cancel the deal before midnight on Tuesday, the lender has to refund everything including the amount you paid up front for the appraisal.
"gave his word" that he would refund any money I had to pay at closing back after closing so that it will be a true no cost loan to me." ....this is not kosher.....
This all sounds like a great example of why a borrower should not just pull some random person off of zillow based on some posted interest rate....
Was your payoff on your current loan more than the new loan amount? "No cost" does not necessarily equate to no cash needed to close.
The final document that shows how much cash needed to close or how much cash back to borrower is called the Closing Disclosure (CD). The bottom of page 1 of the CD will say how much cash is needed to close. Sounds like you are not closing at a title company? Just a mobile notary?
fyi-I believe if you cancel the deal before midnight on Tuesday, the lender has to refund everything including the amount you paid up front for the appraisal.
"gave his word" that he would refund any money I had to pay at closing back after closing so that it will be a true no cost loan to me." ....this is not kosher.....
This all sounds like a great example of why a borrower should not just pull some random person off of zillow based on some posted interest rate....
My new loan amount is about $2000 more than my pay-off amount to account for any additional charges my current lender levies to pay-off the loan (including a recoupment fee of $900 which I was aware of). So this is why I was not expecting close to $3000 in cash to close. I may understand if there is an impound account, but this is not the case.
My docs that I signed were with a notary, but closing is with a separate lending company.
Anyone have a good resource that shows what exactly I can re-coup once I cancel? If I can get the appraisal fee back, that would be great.
I agree, lesson learned that borrower needs to be aware of these deep discount providers. They may offer a good value, but if a borrower is not on top of things, it can get messy quickly. I thought I was on top of things, but when I got different disclosures with varying amounts of cash to close and then the "you have my word" conversation is when I didn't feel like this is not what I was signing up for.
Couldn't you just get things corrected, with wiring instructions, and the right amounts, and have the CD updated? Seems fishy.
The issue is not that I could not get these docs updated .. the issue is that every time I mention to the broker that the cash to close is changing when I expect it to be a true no cost loan, they don't explain why the values are fluctuating with every disclosure release, and they say to take their word that they will refund me after closing ...
Was your payoff on your current loan more than the new loan amount? "No cost" does not necessarily equate to no cash needed to close.
The final document that shows how much cash needed to close or how much cash back to borrower is called the Closing Disclosure (CD). The bottom of page 1 of the CD will say how much cash is needed to close. Sounds like you are not closing at a title company? Just a mobile notary?
fyi-I believe if you cancel the deal before midnight on Tuesday, the lender has to refund everything including the amount you paid up front for the appraisal.
"gave his word" that he would refund any money I had to pay at closing back after closing so that it will be a true no cost loan to me." ....this is not kosher.....
This all sounds like a great example of why a borrower should not just pull some random person off of zillow based on some posted interest rate....
I completely agree that it is a TERRIBLE IDEA to ever get folks from Zillow or any other advertiser driven site. Experience has proven that there is really no such thing to bind any advertiser to honor the promises they make. Bluntly such an advertiser "giving their word" is merely part of their lying and scheming...
That said, what DOES MATTER is what is on Closing Disclosure. If the amount you are expected to pay is not what you thought it would be you need to very quickly whether the REST OF THE TERMS as listed on the CD make sense for your situation or not. Be aware that rates have risen and it may not possible to get a better deal that what is being offered. (fact is MOST lenders offer terms that are very very similar and the ads saying differently are mostly lies...).
It would not worry me about lack of instructions about where the funds should be wired, that is NOT a legally required part of the disclosure. Nobody goes through the trouble of creating loan applications to have closing costs wired to Kenya or someplace. The lender has a standard way to account for all the revenue... Don't confuse a lack of specificity with a third party phishing for info -- https://www.consumer.ftc.gov/blog/sc...-closing-costs In fact I have personally used my investment accounts to wire transfer funds for real estate deals and it is often less hassle than having to jump the hoops of normal retail bank -- https://thefinancebuff.com/using-a-w...ettlement.html
My new loan amount is about $2000 more than my pay-off amount to account for any additional charges my current lender levies to pay-off the loan (including a recoupment fee of $900 which I was aware of). So this is why I was not expecting close to $3000 in cash to close. I may understand if there is an impound account, but this is not the case.
My docs that I signed were with a notary, but closing is with a separate lending company.
Anyone have a good resource that shows what exactly I can re-coup once I cancel? If I can get the appraisal fee back, that would be great.
I agree, lesson learned that borrower needs to be aware of these deep discount providers. They may offer a good value, but if a borrower is not on top of things, it can get messy quickly. I thought I was on top of things, but when I got different disclosures with varying amounts of cash to close and then the "you have my word" conversation is when I didn't feel like this is not what I was signing up for.
sounds like you should cancel immediately. if you do make sure you get a confirmation from the lender. a recoupment fee...never heard of it. ask them recoupment for what?
If your new loan is $2,000 more than the payoff and you are not escrowing and your are to receive a full lender credit (all closing costs credited by the lender) you should be getting cash back. On the bottom of page 1 of the CD which box is checked? 'From' box or 'To' Borrower box?
sounds like you should cancel immediately. if you do make sure you get a confirmation from the lender. a recoupment fee...never heard of it. ask them recoupment for what?
If your new loan is $2,000 more than the payoff and you are not escrowing and your are to receive a full lender credit (all closing costs credited by the lender) you should be getting cash back. On the bottom of page 1 of the CD which box is checked? 'From' box or 'To' Borrower box?
So I just cancelled .. a bit of a load off my shoulders.
The recoupment fee I was aware of. I was on a 5/5 ARM with no closing costs at a local credit union. With their loan, they say that if I pay-off the loan within 3 years, I owe pro-rated closing costs, which they call a recoupment fee. Nothing to do with this new re-fi lender/broker.
So I just cancelled .. a bit of a load off my shoulders.
The recoupment fee I was aware of. I was on a 5/5 ARM with no closing costs at a local credit union. With their loan, they say that if I pay-off the loan within 3 years, I owe pro-rated closing costs, which they call a recoupment fee. Nothing to do with this new re-fi lender/broker.
Interest rate pricing right now is most likely at least as good as when you locked with the last lender, so you could probably give it another shot with a more reputable/reliable lender. You may want to see when your 3 year period is up with the credit union. If you are close, you may want to wait.
The issue is not that I could not get these docs updated .. the issue is that every time I mention to the broker that the cash to close is changing when I expect it to be a true no cost loan, they don't explain why the values are fluctuating with every disclosure release, and they say to take their word that they will refund me after closing ...
This might be because the rate wasn't locked in, and the fluctuations changed cash to close?
The 2K amount also seemed fishy, because that's the amount you are allowed to take out of the mortgage on a traditional rate and term loan (not a cash-out refi). Was this amount being added to your loan and then given to the lender?!
This all seems like a raw deal.
It's good that you canceled - find a reputable lender (word of mouth is often the best!) and go with that person.
Finally - I don't know how you'll get an appraisal fee back. It's paid to the appraisal company as part of the appraisal, I've always though.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Tim has some excellent points...
