Can I get out of a refi since the rates have dropped AGAIN?
by Mortgage Rates on Wednesday, November 3rd, 2010 | 6 Comments
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It is legal and happens all the time. You should discuss with your lender if there are any non-refundable fees that you’ll have to pony up. Remember the loan is only finalized when you sign the docs in the end. Also, if you paid for the appraisal you own it, make sure you don’t pay for it again…that’s a racket.
I believe that you can walk away any time before the final papers are signed and the loan funded.
We to want to refinance and I’m going to watch interest rates for a while longer (post inaugural) just to see what happens.
until you have signed, you are an open agent borrower. And when
the broker said you were stuck with this rate, that is BS. Any
rate can be negotiated at any time till you have signed a commitment
and I doubt you signed any commitment without getting $.
In my opinion, you are still free agents/borrowers.
Certainly it’s legal. You may lose your application fee and if you already paid for the appraisal, you’ve spent that. Another lender may be able to use that appraisal, but there are a lot of IFs attached to that…if it meets the new lender’s requirements, if the appraiser will re-certify it (that costs about $100), if the original lender will let them, and if it was an appraiser the new lender might have used anyway.
But for that much of a rate difference, I’d go for it. Whatever you’ve already paid will easily be offset by the amount of interest you won’t be paying.
BTW, at this lender, when we lock a rate it’s locked. We will not negotiate if the rate drops. Some loans may have a one time adjustment, but usually it’s only about 1/8, not a big jump.
Yes, it’s perfectly legal to walk right now. You are NOT legally bound to buy this interest rate, until after you sign for the interest rate.
That three day opt out, is AFTER the mortgage closes.
Absolutely, you can walk now, or within 3 days of closing.
Talk to lender and tell them you want the lower rate, and see what can be worked out with them using the same appraisal. Request that they give you the appraisal. They may or may not waive the application fee, but I’d try first working with them again. You’re the ones who locked in the fee, not them, and your decision will likely cost you the application fee. Depends on your credit, as only the best can get that 4.75%.