Mortgage Rate Lock Avoiding Hidden Fees
by Mark from Mount Juliet, Tennessee, USA
Regarding mortgage rate lock and avoiding hidden fees: My wife and I went to closing this past Friday. We received a Good Faith Estimate for 4.5% and no points. When we were at closing we were hit with 4.5% and 1 point. Is this legal?
Kate Answers: Mortgage Rate Lock - Avoiding Hidden Fees
Dear Mark, Let me state this clearly. I hate the practice of non-disclosure. Mortgage borrowers deserve better. This common practice is unethical and immoral.
Mark, you know I have to say this. I am not an attorney, cannot give legal advice and laws differ from state to state.
Whether you decide to bite the bullet and continue with closing the transaction or stage a protest refusing to close until the 1 percent fee is removed, here is the point. Did you receive a written Mortgage Rate Lock Agreement? Does it correspond to your written Good Faith Estimate?
For fear of sounding like a broken record, all mortgage borrowers MUST demand written Good Faith Estimates and written Mortgage Rate Lock Agreements. Period!
I'm reading of accounts like yours on a daily basis. That's why I keep speaking out about the non-disclosure of mortgage rate lock. So read the following articles I have recently written. When you're finished, please let me know if you have more questions.
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.
And last but not least, go to Understanding Mortgage Closing Costs
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