by Ali from New York, NY USA
Ask Kate - Deposits For Mortgage Lock-Ins: If I cancel my mortgage application, is the lender required to refund my lock-in fees? We locked our mortgage rate via email contact with one lender.
However he never got back with us with anything in writing. So we changed to another lender and closed on our house. The first lender charged us a quarter percent for locking the interest. Can we get back the money? Ali
Kate Answers - Deposits For Mortgage Lock-Ins: If I cancel my mortgage application, is the lender required to refund my lock-in fees?
Hi Ali, Whew, what a question! Let me explain.
After locking your mortgage rate over the phone, you should have received written confirmation shortly by mail. But mortgage lock-ins are stressful and many homeowners forget about asking for written agreements. That is, until something goes haywire.
I'm assuming you gave the first mortgage company authorization to charge your credit card since you locked over the phone. So go to the New York ".gov" website to read about consumer rights under state laws.
You mentioned you deposited .25% of your loan amount in a lock fee. Depending on the size of your mortgage, the cost of hiring an attorney to recover your deposit might not be worthwhile. If you decide to consult a legal firm, ask about their charges upfront.
Nikki had a similar problem after locking her interest rate. She asked me, "Do you think I might be able to get my lock deposit back because I've never gotten the written confirmation from the bank?"
Read my answer to Nikki's question How do I recover my mortgage interest rate lock deposit
where you will find some tips pertinent to your situation.
For others reading this letter, please listen up! The act of locking a rate must be followed with a signed agreement in writing! Hidden cost is the number one problem for home loan applicants when it comes to mortgage lock-ins
. In the absence of written agreements, how do you know what to expect?
Want to see what other Readers just like you are asking about timing mortgage lock-ins... How can I lock my mortgage rate
- I have seen the rates go up and down the last two months and wonder when could I lock in a rate?Timing my mortgage rate lock
- Should I go ahead and lock in now, or wait until it is closer to my closing date to see if mortgage rates will fall further?
And here you'll find homeowners offering opinions and personal experiences related to mortgage lock-ins... I'd break my mortgage lock for a lower rate
- If my current lender doesn’t want to lose the deal, I would think they could come up with a way to break the lock and get me the lower interest rate.I wouldn't switch lenders after I've locked my rate
- I have done business with my mortgage broker for some time now and would not feel right breaking the mortgage rate lock.
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Finding Help for Locking Rates
My Interest Rate Lock Guarantee - Help for timing your rate lock.
The best solution to avoiding hidden fees is to ask the right questions before you lock mortgage rates.
Get mortgage broker fees in writing or your rate lock is meaningless!
How good is a mortgage interest rate lock guarantee?
Yield Spread Premium is a common reason for losing your rate lock.
Questions to ask before you lock.
Search questions and answers at Ask Kate Mortgage Rate Lock Center I.
More questions and answers at Ask Kate Mortgage Rate Lock Center II.
Return from Mortgage Lock-Ins to Get Your Best Mortgage Rate