Are we getting screwed...what are my rights? (loan, interest rate, fees)

[eire6678]

Long story short. We locked in to a great refinance rate of 5.75...waited over a month to close. Now the day before closing broker tells us lock expired on 10/21 (we paid $750). New rate is 6.25. Never informed of expiration...even though we signed 30 day lock...what do we do??!!

[SuSuSushi]

If you signed a 30 day lock, you knew when the date of expiration was.

[eire6678]

Why do we get penalized when they took extra long to close...I had everything to them w/ in days?

[ShanetheMortgageMan]

The lender should've offered you lock extension options - where you pay a little more in points to preserve the locked in interest rate. Usually cost about .125% in points to extend for 5 days, .250% in points to extend for 10 days, etc.

[renriq02]

hmmm that's a huge difference in rate

I would not close on the loan, and wait to the rates drop again

[eire6678]

Thank you all for your input...we do not plan on closing. We are going to wait it out a little bit. I had the broker agree to a free refinance w/in 3 months after closing if rates drop again. I tried for longer but he wouldn't bite.

[Mjames]

Originally Posted by eire6678

Thank you all for your input...we do not plan on closing. We are going to wait it out a little bit. I had the broker agree to a free refinance w/in 3 months after closing if rates drop again. I tried for longer but he wouldn't bite.

Brings up tons of questions.

Define "Free"...does this mean absolutely no money from you, or just no fees to the broker? Look at the GFE you received for your loan. Did your broker give you something in writing stating you would be charged none of those fees if you refinance in 3 months?

Do you actually have something in writing from the broker?

Are there any prepayment penalties/fees on your new loan? My new mortgage has a prepayment fee if I pay it off within 6 months. I was OK with that because I'm definitely not refinancing soon if ever.

Sorry, but I'm suspicious of "Free".

[HappyTexan]

Originally Posted by eire6678

Long story short. We locked in to a great refinance rate of 5.75...waited over a month to close. Now the day before closing broker tells us lock expired on 10/21 (we paid $750). New rate is 6.25. Never informed of expiration...even though we signed 30 day lock...what do we do??!!

So 30 day lock and you waited "over" a month ?
When you signed you knew the lock time period. How are you "getting screwed" ?

Oh..I see your next post..so the bank took longer than 30 days to get your loan done. Well then yes..you got screwed by the bank.

[sneezecake]

Rates dropped a bunch today - give it another shot with a different lock today!

[eire6678]

Thank you I know...he came back at me today for 6% but now my husband wants to take our money and run. I feel that it is not entirely the brokers fault. I think that between 9/21 and now ALOT has happened which lead to a jump in rates and slower processing time. I posted my original GFE if that checks out I will stick w/ this guy. If I was getting screwed w/ fees from the get go then I will find another broker.