Backing out of a mortgage refi

[teaboy]

I’m a couple days away from closing on a refi and I want to back out and take advantage of recent lower rates from a different broker.

It’s a “no cost” loan with closing costs of ~$1295 offset by a ~$1295 rebate credit.

Appraisal fee (already paid, but presumably I can use this same appraisal with the new lender) ..$350
Title services and lender’s title insurance ..$850
Government recording fee ..$70
Rebate credit ..-$1295

If I back out of the refi now, am I liable for any or all of the closing costs?

tb

[Coronita]

When I went through this….

Unless you signed the document, you can back out…except you probably need to pay for the appraisal. You did ask your lender/broker first what sort of fees you would have to pay for if you backed out, didn’t you?

….If you already signed the doc, you have 72 hours to cancel.

The appraisal may/maynot carry over to the next loan…as if the loan is from a different lender, they might require their own appraisal from their appraiser.

Some companies like Amerisave, I believe makes you pay up front a processing fee, which I think you don’t get back if you cancel. That was the source of a lot of complaints.

[Coronita]

When I went through this….

Unless you signed the document, you can back out…except you probably need to pay for the appraisal. You did ask your lender/broker first what sort of fees you would have to pay for if you backed out, didn’t you?

….If you already signed the doc, you have 72 hours to cancel.

The appraisal may/maynot carry over to the next loan…as if the loan is from a different lender, they might require their own appraisal from their appraiser.

Some companies like Amerisave, I believe makes you pay up front a processing fee, which I think you don’t get back if you cancel. That was the source of a lot of complaints.

[Coronita]

When I went through this….

Unless you signed the document, you can back out…except you probably need to pay for the appraisal. You did ask your lender/broker first what sort of fees you would have to pay for if you backed out, didn’t you?

….If you already signed the doc, you have 72 hours to cancel.

The appraisal may/maynot carry over to the next loan…as if the loan is from a different lender, they might require their own appraisal from their appraiser.

Some companies like Amerisave, I believe makes you pay up front a processing fee, which I think you don’t get back if you cancel. That was the source of a lot of complaints.

[Coronita]

When I went through this….

Unless you signed the document, you can back out…except you probably need to pay for the appraisal. You did ask your lender/broker first what sort of fees you would have to pay for if you backed out, didn’t you?

….If you already signed the doc, you have 72 hours to cancel.

The appraisal may/maynot carry over to the next loan…as if the loan is from a different lender, they might require their own appraisal from their appraiser.

Some companies like Amerisave, I believe makes you pay up front a processing fee, which I think you don’t get back if you cancel. That was the source of a lot of complaints.

[Coronita]

When I went through this….

Unless you signed the document, you can back out…except you probably need to pay for the appraisal. You did ask your lender/broker first what sort of fees you would have to pay for if you backed out, didn’t you?

….If you already signed the doc, you have 72 hours to cancel.

The appraisal may/maynot carry over to the next loan…as if the loan is from a different lender, they might require their own appraisal from their appraiser.

Some companies like Amerisave, I believe makes you pay up front a processing fee, which I think you don’t get back if you cancel. That was the source of a lot of complaints.

[teaboy]

flu,
Thanks.
You wrote “when i went through this”. Do you mean that you backed out of a refi?

Mea culpa, I didn’t ask enough questions. Although in my defence that was partly because I wouldn’t have fully trusted (that I fully understood) the answers I got.

You wrote “If you already signed the doc, you have 72 hours to cancel.” Which doc?
I signed the following docs at the same time 1 month ago and no others since:
-Uniform Resident Loan Application
-Acknowledgement of receipt of GFE (Good Faith Estimate)
-Federal Truth-in-Lending Disclosure Statement
-Provider of Service Addendum
-Acknowledgement of intent to proceed
-Servicing Disclosure Statement
-Borrowers Certification & Authorization

tb

[teaboy]

flu,
Thanks.
You wrote “when i went through this”. Do you mean that you backed out of a refi?

Mea culpa, I didn’t ask enough questions. Although in my defence that was partly because I wouldn’t have fully trusted (that I fully understood) the answers I got.

You wrote “If you already signed the doc, you have 72 hours to cancel.” Which doc?
I signed the following docs at the same time 1 month ago and no others since:
-Uniform Resident Loan Application
-Acknowledgement of receipt of GFE (Good Faith Estimate)
-Federal Truth-in-Lending Disclosure Statement
-Provider of Service Addendum
-Acknowledgement of intent to proceed
-Servicing Disclosure Statement
-Borrowers Certification & Authorization

tb

[teaboy]

flu,
Thanks.
You wrote “when i went through this”. Do you mean that you backed out of a refi?

Mea culpa, I didn’t ask enough questions. Although in my defence that was partly because I wouldn’t have fully trusted (that I fully understood) the answers I got.

You wrote “If you already signed the doc, you have 72 hours to cancel.” Which doc?
I signed the following docs at the same time 1 month ago and no others since:
-Uniform Resident Loan Application
-Acknowledgement of receipt of GFE (Good Faith Estimate)
-Federal Truth-in-Lending Disclosure Statement
-Provider of Service Addendum
-Acknowledgement of intent to proceed
-Servicing Disclosure Statement
-Borrowers Certification & Authorization

tb

[teaboy]

flu,
Thanks.
You wrote “when i went through this”. Do you mean that you backed out of a refi?

Mea culpa, I didn’t ask enough questions. Although in my defence that was partly because I wouldn’t have fully trusted (that I fully understood) the answers I got.

You wrote “If you already signed the doc, you have 72 hours to cancel.” Which doc?
I signed the following docs at the same time 1 month ago and no others since:
-Uniform Resident Loan Application
-Acknowledgement of receipt of GFE (Good Faith Estimate)
-Federal Truth-in-Lending Disclosure Statement
-Provider of Service Addendum
-Acknowledgement of intent to proceed
-Servicing Disclosure Statement
-Borrowers Certification & Authorization

tb

[teaboy]

flu,
Thanks.
You wrote “when i went through this”. Do you mean that you backed out of a refi?

Mea culpa, I didn’t ask enough questions. Although in my defence that was partly because I wouldn’t have fully trusted (that I fully understood) the answers I got.

You wrote “If you already signed the doc, you have 72 hours to cancel.” Which doc?
I signed the following docs at the same time 1 month ago and no others since:
-Uniform Resident Loan Application
-Acknowledgement of receipt of GFE (Good Faith Estimate)
-Federal Truth-in-Lending Disclosure Statement
-Provider of Service Addendum
-Acknowledgement of intent to proceed
-Servicing Disclosure Statement
-Borrowers Certification & Authorization

tb

[Coronita]

[quote=teaboy]flu,
Thanks.
You wrote “when i went through this”. Do you mean that you backed out of a refi?

Mea culpa, I didn’t ask enough questions. Although in my defence that was partly because I wouldn’t have fully trusted (that I fully understood) the answers I got.

You wrote “If you already signed the doc, you have 72 hours to cancel.” Which doc?
I signed the following docs at the same time 1 month ago and no others since:
-Uniform Resident Loan Application
-Acknowledgement of receipt of GFE (Good Faith Estimate)
-Federal Truth-in-Lending Disclosure Statement
-Provider of Service Addendum
-Acknowledgement of intent to proceed
-Servicing Disclosure Statement
-Borrowers Certification & Authorization

tb[/quote]

Well, let’s just say I considered backing out of the loan two weeks after I locked. Because right after I locked, the rates were lower again. My broker friend said I was welcome to, but that she would need me to pay for the appraisal, since I would be going through some other lender that used a different appraiser.

I ended up going through the motions, getting the appraisal, doing the paper work. And finally after the docs were signed/notarized, I still was thinking of pulling out at the 48th hour into my Right of rescission period. I ended up going through with it anyway, because frankly, what I’m going end up doing is refinance this loan with a private loan from folks I know at the current market rate (might as well give the money to someone I know versus the banks).

As far as your second question. You clearly haven’t closed on the loan, because if you did, you would have gotten a few notices about your Right of Rescission, with the exact date on which you can cancel the loan and explicit instructions on how to cancel. (It’s 72 hours from the time you sign the loan). Also, you’re loan document would have also been notarized.

That said, you should be able to cancel your loan (with the cost being the appraisal)….However, the caveat might be if the rates end up being lower, the same lender might choose not to underwrite your loan (hence why my broker/friend said that she would work with the other lenders if I cancelled).

If your lender/broker charged any processing fee up front, i guess it’s debateable whether you’ll get that back. (that’s why I would hesistate to use something like Amerisave which has a processing fee up front, in case the loan doesn’t go through the way you want).

Also, did someone already come by and do the appraisal? If not, you can try to argue with the broker/lender that since the appraiser hasn’t done the work yet, you shouldn’t have to pay for it…
(It doesn’t always work out that way, because sometimes the appraiser requires the payment for the appraisal upfront, regardless if they ended up doing it or not. My broker/friend ended up paying up front even though the appraiser came a week later).

I have to say, with all these new “trust in lending loan docs”, things for me are incredibly more difficult to understand then my previous refinance. I couldn’t even get the numbers/estimates/costs to match up with what I was quoted, and thought my broker/friend was trying to pull a fast one. But actual numbers were right…. These new “truth in lending” disclosures, I’m surprised if most people would understand off the bat…

I think when I have more time, I’m going to put a wiki together to explain how the numbers match up, because I spent a few hours trying to figure it out and approximately 15 calls to my broker friend in an afternoon (which I must have annoyed the hell out of)…

Some friendly advice. The day you close on your loan, you’ll need it notarized…Arrange to do this in the morning and make sure you’re broker/lender is available to talk to you that entire day…Why? Because you’ll get approximately 100 pages of documents that you have never seen before with the new disclosures etc…And a lot of the documents and the way numbers are written will make you scratch your head…The last thing you want to do is sign at 4pm, when your broker is about to leave for the day, the escrow/notary person is waiting for your signature,etc…
That was my mistake, since I thought it was going to be a cakewalk from my previous refi…It wasn’t….So i fortunately, I made the notarizer stay while I went through all the documents page by page, and bugged the hell out of my broker friend all the way to 9pm even after I finished signing two hours earlier.

Good luck.

[Coronita]

[quote=teaboy]flu,
Thanks.
You wrote “when i went through this”. Do you mean that you backed out of a refi?

Mea culpa, I didn’t ask enough questions. Although in my defence that was partly because I wouldn’t have fully trusted (that I fully understood) the answers I got.

You wrote “If you already signed the doc, you have 72 hours to cancel.” Which doc?
I signed the following docs at the same time 1 month ago and no others since:
-Uniform Resident Loan Application
-Acknowledgement of receipt of GFE (Good Faith Estimate)
-Federal Truth-in-Lending Disclosure Statement
-Provider of Service Addendum
-Acknowledgement of intent to proceed
-Servicing Disclosure Statement
-Borrowers Certification & Authorization

tb[/quote]

Well, let’s just say I considered backing out of the loan two weeks after I locked. Because right after I locked, the rates were lower again. My broker friend said I was welcome to, but that she would need me to pay for the appraisal, since I would be going through some other lender that used a different appraiser.

I ended up going through the motions, getting the appraisal, doing the paper work. And finally after the docs were signed/notarized, I still was thinking of pulling out at the 48th hour into my Right of rescission period. I ended up going through with it anyway, because frankly, what I’m going end up doing is refinance this loan with a private loan from folks I know at the current market rate (might as well give the money to someone I know versus the banks).

As far as your second question. You clearly haven’t closed on the loan, because if you did, you would have gotten a few notices about your Right of Rescission, with the exact date on which you can cancel the loan and explicit instructions on how to cancel. (It’s 72 hours from the time you sign the loan). Also, you’re loan document would have also been notarized.

That said, you should be able to cancel your loan (with the cost being the appraisal)….However, the caveat might be if the rates end up being lower, the same lender might choose not to underwrite your loan (hence why my broker/friend said that she would work with the other lenders if I cancelled).

If your lender/broker charged any processing fee up front, i guess it’s debateable whether you’ll get that back. (that’s why I would hesistate to use something like Amerisave which has a processing fee up front, in case the loan doesn’t go through the way you want).

Also, did someone already come by and do the appraisal? If not, you can try to argue with the broker/lender that since the appraiser hasn’t done the work yet, you shouldn’t have to pay for it…
(It doesn’t always work out that way, because sometimes the appraiser requires the payment for the appraisal upfront, regardless if they ended up doing it or not. My broker/friend ended up paying up front even though the appraiser came a week later).

I have to say, with all these new “trust in lending loan docs”, things for me are incredibly more difficult to understand then my previous refinance. I couldn’t even get the numbers/estimates/costs to match up with what I was quoted, and thought my broker/friend was trying to pull a fast one. But actual numbers were right…. These new “truth in lending” disclosures, I’m surprised if most people would understand off the bat…

I think when I have more time, I’m going to put a wiki together to explain how the numbers match up, because I spent a few hours trying to figure it out and approximately 15 calls to my broker friend in an afternoon (which I must have annoyed the hell out of)…

Some friendly advice. The day you close on your loan, you’ll need it notarized…Arrange to do this in the morning and make sure you’re broker/lender is available to talk to you that entire day…Why? Because you’ll get approximately 100 pages of documents that you have never seen before with the new disclosures etc…And a lot of the documents and the way numbers are written will make you scratch your head…The last thing you want to do is sign at 4pm, when your broker is about to leave for the day, the escrow/notary person is waiting for your signature,etc…
That was my mistake, since I thought it was going to be a cakewalk from my previous refi…It wasn’t….So i fortunately, I made the notarizer stay while I went through all the documents page by page, and bugged the hell out of my broker friend all the way to 9pm even after I finished signing two hours earlier.

Good luck.

[Coronita]

[quote=teaboy]flu,
Thanks.
You wrote “when i went through this”. Do you mean that you backed out of a refi?

Mea culpa, I didn’t ask enough questions. Although in my defence that was partly because I wouldn’t have fully trusted (that I fully understood) the answers I got.

You wrote “If you already signed the doc, you have 72 hours to cancel.” Which doc?
I signed the following docs at the same time 1 month ago and no others since:
-Uniform Resident Loan Application
-Acknowledgement of receipt of GFE (Good Faith Estimate)
-Federal Truth-in-Lending Disclosure Statement
-Provider of Service Addendum
-Acknowledgement of intent to proceed
-Servicing Disclosure Statement
-Borrowers Certification & Authorization

tb[/quote]

Well, let’s just say I considered backing out of the loan two weeks after I locked. Because right after I locked, the rates were lower again. My broker friend said I was welcome to, but that she would need me to pay for the appraisal, since I would be going through some other lender that used a different appraiser.

I ended up going through the motions, getting the appraisal, doing the paper work. And finally after the docs were signed/notarized, I still was thinking of pulling out at the 48th hour into my Right of rescission period. I ended up going through with it anyway, because frankly, what I’m going end up doing is refinance this loan with a private loan from folks I know at the current market rate (might as well give the money to someone I know versus the banks).

As far as your second question. You clearly haven’t closed on the loan, because if you did, you would have gotten a few notices about your Right of Rescission, with the exact date on which you can cancel the loan and explicit instructions on how to cancel. (It’s 72 hours from the time you sign the loan). Also, you’re loan document would have also been notarized.

That said, you should be able to cancel your loan (with the cost being the appraisal)….However, the caveat might be if the rates end up being lower, the same lender might choose not to underwrite your loan (hence why my broker/friend said that she would work with the other lenders if I cancelled).

If your lender/broker charged any processing fee up front, i guess it’s debateable whether you’ll get that back. (that’s why I would hesistate to use something like Amerisave which has a processing fee up front, in case the loan doesn’t go through the way you want).

Also, did someone already come by and do the appraisal? If not, you can try to argue with the broker/lender that since the appraiser hasn’t done the work yet, you shouldn’t have to pay for it…
(It doesn’t always work out that way, because sometimes the appraiser requires the payment for the appraisal upfront, regardless if they ended up doing it or not. My broker/friend ended up paying up front even though the appraiser came a week later).

I have to say, with all these new “trust in lending loan docs”, things for me are incredibly more difficult to understand then my previous refinance. I couldn’t even get the numbers/estimates/costs to match up with what I was quoted, and thought my broker/friend was trying to pull a fast one. But actual numbers were right…. These new “truth in lending” disclosures, I’m surprised if most people would understand off the bat…

I think when I have more time, I’m going to put a wiki together to explain how the numbers match up, because I spent a few hours trying to figure it out and approximately 15 calls to my broker friend in an afternoon (which I must have annoyed the hell out of)…

Some friendly advice. The day you close on your loan, you’ll need it notarized…Arrange to do this in the morning and make sure you’re broker/lender is available to talk to you that entire day…Why? Because you’ll get approximately 100 pages of documents that you have never seen before with the new disclosures etc…And a lot of the documents and the way numbers are written will make you scratch your head…The last thing you want to do is sign at 4pm, when your broker is about to leave for the day, the escrow/notary person is waiting for your signature,etc…
That was my mistake, since I thought it was going to be a cakewalk from my previous refi…It wasn’t….So i fortunately, I made the notarizer stay while I went through all the documents page by page, and bugged the hell out of my broker friend all the way to 9pm even after I finished signing two hours earlier.

Good luck.

[Coronita]

[quote=teaboy]flu,
Thanks.
You wrote “when i went through this”. Do you mean that you backed out of a refi?

Mea culpa, I didn’t ask enough questions. Although in my defence that was partly because I wouldn’t have fully trusted (that I fully understood) the answers I got.

You wrote “If you already signed the doc, you have 72 hours to cancel.” Which doc?
I signed the following docs at the same time 1 month ago and no others since:
-Uniform Resident Loan Application
-Acknowledgement of receipt of GFE (Good Faith Estimate)
-Federal Truth-in-Lending Disclosure Statement
-Provider of Service Addendum
-Acknowledgement of intent to proceed
-Servicing Disclosure Statement
-Borrowers Certification & Authorization

tb[/quote]

Well, let’s just say I considered backing out of the loan two weeks after I locked. Because right after I locked, the rates were lower again. My broker friend said I was welcome to, but that she would need me to pay for the appraisal, since I would be going through some other lender that used a different appraiser.

I ended up going through the motions, getting the appraisal, doing the paper work. And finally after the docs were signed/notarized, I still was thinking of pulling out at the 48th hour into my Right of rescission period. I ended up going through with it anyway, because frankly, what I’m going end up doing is refinance this loan with a private loan from folks I know at the current market rate (might as well give the money to someone I know versus the banks).

As far as your second question. You clearly haven’t closed on the loan, because if you did, you would have gotten a few notices about your Right of Rescission, with the exact date on which you can cancel the loan and explicit instructions on how to cancel. (It’s 72 hours from the time you sign the loan). Also, you’re loan document would have also been notarized.

That said, you should be able to cancel your loan (with the cost being the appraisal)….However, the caveat might be if the rates end up being lower, the same lender might choose not to underwrite your loan (hence why my broker/friend said that she would work with the other lenders if I cancelled).

If your lender/broker charged any processing fee up front, i guess it’s debateable whether you’ll get that back. (that’s why I would hesistate to use something like Amerisave which has a processing fee up front, in case the loan doesn’t go through the way you want).

Also, did someone already come by and do the appraisal? If not, you can try to argue with the broker/lender that since the appraiser hasn’t done the work yet, you shouldn’t have to pay for it…
(It doesn’t always work out that way, because sometimes the appraiser requires the payment for the appraisal upfront, regardless if they ended up doing it or not. My broker/friend ended up paying up front even though the appraiser came a week later).

I have to say, with all these new “trust in lending loan docs”, things for me are incredibly more difficult to understand then my previous refinance. I couldn’t even get the numbers/estimates/costs to match up with what I was quoted, and thought my broker/friend was trying to pull a fast one. But actual numbers were right…. These new “truth in lending” disclosures, I’m surprised if most people would understand off the bat…

I think when I have more time, I’m going to put a wiki together to explain how the numbers match up, because I spent a few hours trying to figure it out and approximately 15 calls to my broker friend in an afternoon (which I must have annoyed the hell out of)…

Some friendly advice. The day you close on your loan, you’ll need it notarized…Arrange to do this in the morning and make sure you’re broker/lender is available to talk to you that entire day…Why? Because you’ll get approximately 100 pages of documents that you have never seen before with the new disclosures etc…And a lot of the documents and the way numbers are written will make you scratch your head…The last thing you want to do is sign at 4pm, when your broker is about to leave for the day, the escrow/notary person is waiting for your signature,etc…
That was my mistake, since I thought it was going to be a cakewalk from my previous refi…It wasn’t….So i fortunately, I made the notarizer stay while I went through all the documents page by page, and bugged the hell out of my broker friend all the way to 9pm even after I finished signing two hours earlier.

Good luck.

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