by Nikki from Massachusetts
Ask Kate: Refinancing and mortgage interest rate lock deposit
I'm in the process of refinancing my mortgage. I paid $3800 deposit to lock in the interest rate which was 1% of the amount of loan request.
I got a call from the bank today that my loan application is rejected, because the value of my house is less than the amount that I owed the bank.
I bought the house for $460,000 in 2003. The house was appraised at $510,000 in 2006 when I refinanced it 2 yrs ago. The appraiser said my house is only worth $340,000 today.
I owe the bank $380,000. The bank told me that I won't be able to close my loan and the $3800 that I paid for rate lock deposit is non-refundable according to rate lock-in disclosure.
I've never gotten the lock-in agreement in writing from the bank after I locked in my rate. However, the bank has this fine print posted on their website.
"You can lock your rate once your application is approved. In some cases a rate lock will only be accepted up to 5 days before your scheduled closing. You must provide a 1% lock-in fee at the time you request a rate lock. Your rate is not locked until you receive written confirmation."
Do you think I might be able to get my deposit money back, because I've never gotten the written confirmation from the bank? Do you have any recommendations on how to deal with this situation?


Buying A House | Choosing A Lender | Sell Your House | Improve Credit Rating | Best Fixed Rates | Low Mortgage Payments
Comments for
|
||
|
||
Get-Your-Best-Mortgage-Rate.com is getting a facelift!
Please bear with me! The content is identical so continue to browse. I'm working as fast as I can to finish up!
I'm grinning. Hope you're enjoying the new look too!
Your friend,Lock Answers by Kate - Learn the nitty gritty inside story of locking your mortgage rate.
Refinance Answers by Kate - Refinancing brings out opinions, for sure! Get the facts here.
Answers by Kate For Seniors - Reverse Mortgage, the unique income answer for retirees.
Home Buying Answers by Kate - Learn how to buy a house. Unusual facts to aid your home buying experience.
Credit Answers by Kate - Improving credit could change your life. Find how to get more than temporary results.
FHA and VA Answers by Kate - Clear the fog. The low down on VA and FHA loan requirements.
PMI Answers by Kate - Private mortgage insurance, friend or foe? Do you know how to get rid of it?
ARM Answers by Kate - Do you have an adjustable rate home mortgage? You can ask Kate for help.
Loan Modification Answers by Kate - Unique help for modifying your mortgage. Make sure you don't miss this.
Website Answers by Kate - Yes... Readers even ask Kate how to build a website.