Almost a month ago my husband and I signed papers to start processing our mortgage refinance with mortgage broker . Last week, my husband found a better deal which is lower interest rate and lower closing cost. Today, my husband got a call from mortgage broker that we can now close the deal. My husband mentioned that we are no longer interested. The owner of the company called and left a voice message that we can't just back out and we have to pay $ 2,000 for processing fee even though my husband and I signed that the Application Fee, Appraisal Fee and Credit Report Fee will cost us $ 0.00. The broker company owner also said, that not to pushed this further which I think he meant they can sue us if we back out or if we do not to pay the $ 2,000. We live in Wisconsin. Do they have legal right to do that? There is nothing in papers that we signed that if we back out or cancel this we will need to pay for this amount. Please need your help. We are so confuse. Will our credit score get affected? Will they win if they decided to sue us? Any help is definitely appreciated. Thank you!
Answer by reenzz
I'm sure the papers you signed state that you will be responsible for any costs the lender incurres if you should back out once your approved. Read your signed papers very carefully.
Answer by Meghan
Read the papers you signed very carefully, and have an attorney review them on your behalf. If the papers you sign state that the Application fee, Appraisal fee and Credit report cost you $ 0.00- you need to make sure that is not contigent upon the deal closing.
If it is, you may be better off paying the $ 2000 and getting the other deal since it will cost you less in the long run. And the processing fee is probably points, which is basically the mortgage broker's commission. I would just tell them that you found a lower rate somewhere else. See if they can find you a deal to match the one you found.
Answer by kemperk
a borrower gets the same overall benefit from paying faster on any debt.
NOT sure the dif but IF YOU are sure of your position,sick to your guns
and risk the anger of the MB. HE is about to lose an easy sale/placement of
your mort.
if unsure, close/through with him
Answer by Real Estate Guy
Read the papers and talk with a REAL ESTATE lawyer.
Buy law you can actually back out of a refin 3 days AFTER you sign the papers. That is why the money isn't available until 3 days.
I don't believe you owe them anything. However, you may have signed papers saying you did. Talk with a lawyer. It will be money well spent.
Usually there isn't any fees like that. And if they did slip this 2000 into the paperwork, god knows what else they are slipping in.
GET A LAWYER
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Orignal From: Can I cancel my mortgage before closing?
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