Question: >ah, bullshit. these days they don’t know the exact interest rate >until the day before closing, because it changes every day. they >may have been waiting to try to lock in a lower interest rate.
Answer: I have bought 3 homes in the last 4 years, and refinanced once. I have always gotten a rate-lock agreement, and known the interest rate at least 30 days prior to closing. Two of the companies I used had no surprises, and the rate and fees were all the same or less than the GFE.
However, my last home purchase was from a national builder which owns their own mortgage company. While writing the saled contract, I unknowingly signed a paper (my fault, I should have looked closer) indicating that if I did not use their mortgage company, I would lose any price incentives that were offered on the home. Of course, thier rates and service was terrible. However, when I used them, I had them give me a credit in trade for a higher rate (the exact opposite of paying discount points.) After being in the home for 2 weeks, I began the refinance process, and refinanced it with another company after 6 weeks. I did calculations and determined that after 2.5 years, I would be ahead by refinancing. Sure it would have been great if I could have gone with the better rate initally, (and not have to pay closing costs again) but it was my fault for agreeing to use the builder’s mortgage company in the first place. Fortunately, since my refi was so close in time to the original, the title company gave me discounts on title insurance, title fees, and the appraiser put a new name on the appraisal and charged less since he did not have to do the full appraisal again (my LTV is 50%). Still stinks to hve to pay FL tax again on the mortgage, but I made my bed and have to lie in it.
The extent of my rambling is that the OP may be able to refi with reasonable fees if it happens soon and he was truly decieved.
Also, I was told by one mortgage broker that the builder’s mortgage company would “get in trouble” with Fannie Mae since the original loan only lasted 6 weeks. He said that if new mortgage loans are refinanced within 90 days, Fannie Mae looks down on that. Apparently if this happens frequently, Fannie Mae thinks that the company is ripping off customers if customers find it advantageous to refi so soon. Does anyone know if this is true?
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