Lost $2,100 on a cash out refi I should have walked away from

I went with a local lender in Phoenix who quoted me a 6.5% rate but after 45 days of delays they came back saying I now qualified for 7.8% due to market changes. They already had my $1,200 appraisal fee and $900 in other junk fees tied up with no refund policy. Anyone else get bait and switched on a rate after the lock expired?

2 comments

2 Comments

karen_nelson4012d ago

Due to market changes" is the classic line they feed you. But here's the thing. You let them hold your money for 45 days without a written rate lock agreement. That was the mistake. Lenders here in Phoenix play games with that all the time. You need to get everything in writing up front. Next time ask for a rate lock extension clause in the initial paperwork. If they balk at that walk away immediately. You lost $2,100 but it could have been way worse if you closed at that higher rate.

karen_hart12d ago

Wait did they actually tell you up front that those fees were non refundable or did that come out after the delays kicked in? I'm just wondering if you could have pushed harder on them to at least give back part of it since they were the ones dragging their feet for 45 days.