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Home > Cancelling our refinance (long post)!

Cancelling our refinance (long post)!

September 24th, 2012 at 04:35 am

Yep.....we are

About 3 months ago, we decided to refinance to a 15 year fixed....we contact the mortgage guy we used before at Wells Fargo.

It was suppose to be a no fee (except appraisal) refinance at 3.5%.

So on Friday, when we went to sign papers....there were several problems that left us extremely annoyed.

The first one was that there were some fee's that "accidentally" got put on....he said something to the effect that they were put on accidentally and we would receive a credit and then a check.

The second problem was that I was told on Thursday, that since we are within 60 days of property taxes being due (in our state they are due Nov 15th), we would have to bring money to closing (approx $2100)Now, I get why they do it...basically then our taxes wouldn't be due in Nov, they would be paying them in Oct when they are certified....they also collect 115% to adjust (in case they go up from the previous year)and we receive back any overage, but since we had already made house payments, it wasn't the full amount....again, no problem, we have the money, but to be told the day before was rather irritating...on top of that, when they asked me how we were paying (on Friday at 4:00) I was like....uh a check?? No can do, it must be a cashiers check...again never told this...so I am told I can do it Monday which means I would have to leave work early...I get off at 4:15 Monday through Thursday, but in order to get to the bank in time and do all that I would need to leave early as there is not a branch close enough to do it on my lunch or anything.

The third and final issue was that they told us we had to close our credit line (through our bank). This happend the last time we did a refinance...we said no way so we were able to sign some paper (I think it is a subrogation or something) and were able to keep the line of credit. We were rather surprised as nothing had been said ahead of time. This time they said we couldn't keep it open as it has something to do with the value of the house, the amount of the credit line limit and 80% of something....it is a rather large credit line, which we haven't used in years, but we want to keep it open, just in case anything really bad happened...I certainly wouldn't mind lowering the limit at all though. We declined to sign the paper on Friday and figured we would work it out on Monday. Unfortunately, DH was 45 min late to signing due to getting out of work late and our mortgage guy had to leave due to a doctor's appt...he would have stayed the entire time, but we didn't count on DH being so late...anyway, DH called our mortgage guy on Sat and left him a message stating we were not going to close the line of credit....he called back when we were on an outing and left a message saying that was fine but they were going to raise our interest rate then.

So, I guess we will find out tomorrow if he can do anything...by anything, I mean let us keep our credit line and not rasie the rate. If not, we exercise our right to cancel.

Again, it's not that we don't understand why they want us to do it....it is the fact, that NONE of this was told to us ahead of time....extremely annoying to find out the day of signing...on a Friday at 4:00 no less. We have credit scores in the 800's, excellent payment history, and virtually no other debt, except the car loans which now total approx $11,000 total.

I wish he would have warned us this could have been a possibility from the start, or at least early on so we could have discussed it then...now we may be out $445 for the appraisal.

Bummed

3 Responses to “Cancelling our refinance (long post)!”

  1. Monkey Mama Says:
    1348458824

    How aggravating!! I presume most people don't bother to stand their ground or walk away. Good for you. {I absolutely would have walked away too!}

    We just refinanced in April and I don't recall *ever* having to get a cashiers check for a closing. I am sure we did when we purchased our homes (came to the table with substantial down payments). I don't remember but that was a while ago. I was like, "Seriously? A cashiers check for $1000?" Since when? I guess that's the way it is these days. Which caught me rather offguard as well.

  2. Wino Says:
    1348484807

    I looked in to a refinance and decided instead to make mega payments on my house loan. I did a spreadsheet, and it worked out to actually paying less than by refinancing, and I had a 6.5% mortgage.

    I have relegated banks to the "used car dealer" category in my book of respectability. I'd call them both scum, except I've never had scum lie to me.

  3. creditcardfree Says:
    1348490714

    Sorry to hear it didn't go well. I know our mortgage closing with Wells Fargo a couple months ago was down to the wire on the day of closing, with them getting their ducks in a row. Luckily, we didn't need to bring cash to closing, but I didn't know that until the last minute...no way to get a cashier's check at that late date from our online bank. Closing agent was willing to accept wire transfer, but again we didn't have to bring anything. Good to know you stood your ground!!

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