My mortgage broker misrepresented the terms of the adjustable rate.?
by Mortgage Rates on Sunday, September 26th, 2010 | 6 Comments
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I am sure that if you sit and read the paperwork the method of adjusting the interest rate will be explained for you.
Many time it has to due with the average rate during a given period.
W have to go back to the time when you sat down with your mortgage broker and went over your approval. At that time you should have gotten a good understanding of the rate, loan amount when and if there was an adjustable, when the adjustment would take place and what it would adjust to.
Now you had a final approval, again these things should have been explained if anything had changed. If not then go full steam ahead with the loan docs for you to sign.
Now come the loan docs that you and your husband had to sign and be notarized. If there were any conditions on these documents that you did not understand you should have stopped signing and got an explanation from your mortgage broker
These loan docs mirrored your approval along with certain federal and state required documents. Your loan docs would have included any adjustments, when adjustments would occur,the percentage in which these adjustments would happen.
Since you have signed the loan docs agreeing to pay the mortgage company the terms under which you were lent the money and the mortgage company agreed to lend you the money under the terms on the loan docs.
You are required to pay the mortgage company as per your agreement.
I hope this has been of some use to you, good luck.
“FIGHT ON”
You may have been lied to, but you still signed the papers that state your adj otherwise. You will have no recourse against your lender because it is in writing which you signed. You MAY have some recourse against the broker but there a a couple of problems.
1. He most likely s out of the business because mortgage brokers are dropping like flies. Good luck finding him.
2. You would still have to prove he lied to you. Do you have it on tape? If not how will you prove this? He will just say you saw the paperwork at the closing, and you signed it.
I am sorry this has happened to you, but you really need to read what you sign, and not take some shady brokers word.
Did YOUR lawyer review the contract and explain al the possible variables in the fine print?
Undoubtedly, the contract said something like you rate is adjustable based on a combination of the prime AND your credit score.
You are absolutely right, that your rate adjustment is not based on your credit score only on your interest rate and market conditions. You can try and file complain with the licensing department in your state or better business biuro, but remember, that you sign the documents and it will be your world against her. Because interest rates are good now, try to refinance for fixed rate and never worry about adjustable rates again.
So you ddin’t listen and now you want someone else to pay for your mistake?