Closing Costs
We went to closing Thursday to Refi 2 properties after 9 weeks. Problem we had, 11 properties financed, Broker kept complaining (after the appraisal) about having to many Mortgages, so we went to another finance company, refied another loan and paid off one of the mortgages. This brought it down to within the guidelines. (Note: we paid for appraisal upfront so we did not want to lose this money) Loans were approved, when we showed up for the closing, fees doubled. From 2K to over 4K per property. We walked, the closer did not explain the increase and did not have a problem with us walking. The Loan originator (Owner was not around to discuss the difference). The rate was 6.125 and Loan to value was 70%. This was okay, we would have closed if the fees were within reason, we expect a 20% difference but not 100% plus.
Question; A good faith estimate was signed at 2K closing fees with a 4.7% rate 3/1 arm. Because of the delays by broker, we were unable to get this rate again. It went to 5.375 with points or the 6.125 with no points 30 year. Are we responsible for any of the costs associated with the transaction? We would like to get our appraisal fees refunded also.
Note: All the loans and properties were handed to the broker on day one. They wanted the business and said they had no problem with the extra loans at getting these rates.
Is this a typical, For brokers to be less than honest? It seems I have come across my share?
Note: We were refinancing to lower monthly outflow and have down payment on Condo/Apt project. We are due to close next week and wanted to get all the refi's done before this. We have contacted an attorney today, His approach was a wait and see attitude.
Thanks and Have a Great New Year!
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