Question: I got a flyer from a mortgage broker that said “From your loan records, you could refinance at a lower rate today!” Rates are low, and I was looking to refinance. So I called and we got started. He promised zero points and zero loan fees. Everything proceeded as expected, except at the very end when he received a payoff estimate from my lender. It had a refinance prepayment penelty that I had forgotten about, so I could not proceed with the refinance. He said that is fine, but I have to cover the cost of the appraisal that was done. I would not of had to pay this if the loan went through, but since it did not…
So what I am looking for help on, is why do I have to pay this cost? Isn’t this something that he should of checked beforehand?
Answer: Actually, it WAS your responsibility to disclose that you had a prepayment penalty rider on your loan….and in the best case scenario, he should have looked over your existing loan before the appraisal was ordered. (I actually thought it was a question on the refi loan application. (Depends also what state you are in). Tell him to give you the original appraisal…and pay for it. You are both at fault…but you do have something of value out of it… your appraisal.
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