Took cash out refi on my duplex in Phoenix last month and just got hit with a surprise rate adjustment

I refied at 6.5% with a 30-year fixed but missed the fine print about a rate floor on my variable portion and now my payment jumped $210, has anyone else dealt with hidden clauses after closing?

2 comments

2 Comments

evab5221d ago

Did your title company go over the floor rate at closing? I had a buddy who went through this exact thing in Phoenix last year, his loan officer just glossed over the adjustable rate details and he didnt see the floor until his first payment jumped. It took him three months of back and forth to get the lender to admit there was a discrepancy in the original disclosure.

adam67521d ago

Man that "rate floor" got me too on my last refi. I learned the hard way that variable rate portions can have a minimum floor even when the prime rate drops. You gotta look for language like "minimum rate" or "floor rate" in the adjustable rate section. What worked for me was calling the lender and asking for a rate modification or a recast. They might not do it for free but I got mine knocked down to the floor by pointing out I wasn't properly informed about it at closing. Also check your closing documents for any errors in the truth in lending statement. If you catch a discrepancy you can file a complaint with the CFPB which gets their attention fast.