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So, as some of you may know, i refinanced yesterday. Went from a 15 year fixed at 4% to a 10 year at 3.25%.
Funny thing is though....that not only did i get my closing costs paid for, but i'm also getting about 2900 back.
Also, i think (i could be wrong) they made an error on my 'pay off' amount..........and it's under by about 2k.
I signed all the papers yesterday, including a paper saying that neither me or the bank can make any changes to the terms....
Is it my obligation to point that out what i think 'could be' an error to my benefit, or is it their responsibility to make sure the numbers are correct?
Last edited by Thinking-man; 01-31-2012 at 05:55 AM..
You signed an errors and omissions form. If they catch an error, they will correct it. You're not obligated to point anything out, but they could make a change at any point if there is a blatant mistake made. Your loan doesn't even take effect for 3 days so just let it be, especially if you think it's in your favor. If your payoff is under, your lender will catch it because they won't release your lien if it's been underpaid.
You signed an errors and omissions form. If they catch an error, they will correct it. You're not obligated to point anything out, but they could make a change at any point if there is a blatant mistake made. Your loan doesn't even take effect for 3 days so just let it be, especially if you think it's in your favor. If your payoff is under, your lender will catch it because they won't release your lien if it's been underpaid.
but they can't raise my new loan amount....right?
for example, if my loan amount currently before the refi was 300,000 up to jan 1, and i refinanced today, my payoff amount would be 300,000 + 1000 (intrest for Jan1-31). so i would owe 301,000. correct?
i signed the papers saying that my new loan amount is 300,000 and all the docs state that. Can they come back and change that to 301,000?
They can't change it to $301k, but they can tell you that you need to bring in $1k to clear your previous loan, and if you don't, your refi will not go through.
They can't change it to $301k, but they can tell you that you need to bring in $1k to clear your previous loan, and if you don't, your refi will not go through.
The odds of a true error in pay off amount in an era of fully computerized amortization is just about nil. Now it is possible that some one mis-applied a closing cost rebate or sent a tax escrow balance to your in the form of a check instead of crediting the new servicer's escrow account, so I would not go on any shopping spree until the second month of new payments clears (as by then any accounting reconciliation would have been run twice) but overall the general advice is that MOST consumers are surprized by the EXACT number of their loan / monthly payment because of the silliness in how most lenders calculate settlement for a "point in time" instead of when the new cycle ought to begin on begining / middle / end of month (like people get paid...).
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