Rate Lock And Mortgage Refinance Problems

by Bob from Virginia, USA

Ask Kate: Rate lock and mortgage refinance problems My wife and I recently locked in a interest rate over the phone, a 30 year fixed rate mortgage at 4.875% with a major US bank on May 12th.

On the same day, my lender sent me the paperwork stating my locked in rate was good for a 60 day lock but I also received a Good Faith Estimate stating a rate of 5.5 percent.

I contacted my lender and he said that it was an error and not to sign any paperwork he sent me. He emailed new paperwork May 20th. I had informed him a week prior that my wife and I would be on vacation May 22nd - May 29th.

Due to unseen circumstances I did not think I would be able to get the paperwork to him before our trip. I informed him of this and he told me that my deadline was May 27th. He had never mentioned this verbally or written, but he stated that it was not a major problem. I was just to get the paperwork to him when I get back from vacation.

But he stated there might be a small fee involved if he does not receive the signed paperwork by May 27th so my wife and I managed to get the signed paperwork he needed to him by the deadline.

He then informed me that he canceled the loan 2 days prior and the mortgage rates went up drastically. He apologized and told me there is nothing he can do for me.

Kate, my question to you is... Is there anything I can do "legally"? Can the lender cancel our loan without my consent?

I know it was a verbal lock in over the phone, but he would not give us a chance to get the paperwork into him. Now my wife and I lost the opportunity of a life time.

This was a really shady thing this lender did, and needless to say my wife and I are furious. Please, give me advice.

Kate Answers: Rate Lock And Mortgage Refinance Problems

Dear Bob, Okay, let's get to work. Although I have taken out the name of the major bank, you know who to contact. After writing a detailed letter including dates, attach copies of the supporting documents you have signed.

Start moving up the chain of command. This is a major bank so there are many managers, supervisors, vice presidents etc that you can contact for a response to your rate lock and mortgage refinance problems.

If you do not receive satisfactory solutions through the bank, peruse your state's ".gov" website for the unit overseeing and supporting mortgage regulation compliance.

For immediate help with locking mortgage rates, go to:

Lock Mortgage Rates - Avoid Hidden Fees - If you lock mortgage rates over the phone, how do you protect yourself against hidden fees?

Nitty Gritty Mortgage Interest Rate Lock - How mortgage interest rate lock works

Mortgage Rate Lock Guarantee - An insider's view on locking mortgage rates

Next, visit Ask Kate for more of my answers to questions asked by Readers just like you! You will see you are not alone and find additional solutions to common rate lock and mortgage refinance problems.

Below, you will find see links leading to current help for other mortgage issues that I call Kate's Mortgage Turbo Tips. After reading through the pages, please let me know if you have questions.

Take a moment to bookmark Rate Lock and Mortgage Refinance Problems to your favorites and visit often for more mortgage rate lock tips. You can also invite friends to comment on this page or ask another question of their own like you did.

Best Wishes,




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5 Steps to Getting Your Best Mortgage Rate

Step 1 - Find out how much you can afford in monthly house payments.

Step 2 - Insist on mortgage pre-approval.

Step 3 - How to discuss mortgage approval with your lender.

Step 4 - Become an expert on good faith estimates and mortgage closing costs.

Step 5 - How to successfully lock in mortgage rates.

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