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Mortgage Refi situation, seeking opinions
Old 09-20-2012, 03:45 PM   #1
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Mortgage Refi situation, seeking opinions

Back in May I initiated refinancing with existing MegaBank (out of laziness) to lower rate from 5% to under 4%. All paperwork and appraisals were completed in early June. I was told it would close end of June. Well here we are in late September and they are still dragging their feet. Loan expiration was back in early August but "as a service to me since it isn't my fault" they are extending rate and terms indefinitely until close. Last month, I pitched a fit, and they said they moved mine into the "top priority". Some top priority as I still haven't heard anything back. At what point would you say screw you, I'm going somewhere else? It has been shear laziness up to now that I haven't shopped around, as loan amount is under 70% , my credit score is around 820, and income is no problem.
Partly I'm ticked because I know the only reason they are dragging feet as it is an in house refi, with no incentive to do it. Anyone have any thoughts on how to speed this up, or just tell them to bend over and kiss themselves and go somewhere else? I mean surely it doesn't take over 4 months for a refi in house does it?
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Old 09-20-2012, 04:08 PM   #2
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FWIW, My credit union did a refi with us that only took a few weeks. We were the ones slowing them down because we couldn't get an appraiser out here quick enough.

We're looking to do another with them now (last year when from 5.75% to 4.75%... now 30yrs are freakin 3.25%!), and it's all in-house. I find credit unions are "nicer".
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Old 09-20-2012, 04:27 PM   #3
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I would go somewhere else.... rates have come down and I think you could do much better....
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Old 09-20-2012, 04:30 PM   #4
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I agree with the others.
They're honoring the rate because it's higher than market, likely. Rates have come down.
Challenge them on that.
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Old 09-20-2012, 05:01 PM   #5
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Should take less than 30 days for a simple refi.
I'd vote for take a hike.
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Old 09-20-2012, 05:15 PM   #6
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They can't penalize me with any fee for cancellation can they, since it has already expired? The only thing I would be out would be the $400 appraisal cost, then. I should have known better, because the last time I refi'd with them it took a couple extra months and the total loan cost came in magically the same despite making 2 additional payments. Now I have made 4 extra on this one. I already told them they would get an a$$ eating like they never had if they pulled that stunt again. I really think the PenFed 5/5 no closing cost is the perfect one for me, as I could just pay it off easily in 10 years if the rate jumps.
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Old 09-20-2012, 05:22 PM   #7
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Make sure you get a copy of the appraisal and perhaps it can be used with another company.
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Old 09-20-2012, 06:17 PM   #8
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Quote:
Originally Posted by Mulligan View Post
They can't penalize me with any fee for cancellation can they, since it has already expired? The only thing I would be out would be the $400 appraisal cost, then. I should have known better, because the last time I refi'd with them it took a couple extra months and the total loan cost came in magically the same despite making 2 additional payments. Now I have made 4 extra on this one. I already told them they would get an a$$ eating like they never had if they pulled that stunt again. I really think the PenFed 5/5 no closing cost is the perfect one for me, as I could just pay it off easily in 10 years if the rate jumps.
If you haven't paid for the appraisal yet, I would tell them to either close in 10 days at the current rate (if lower) or forget it. If you have paid for the appraisal, you could still insist that they either close in 10 days or reimburse you for your cost since it is their fault that the loan has not closed. You may need to sue them in small claims court to get your $400 back but once you file they may cave. The way they have mistreated you I would play hardball with them.

My refi in Dec-Jan took about 6 weeks and that included the holidays and was longer than it should have been.
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Old 09-20-2012, 06:18 PM   #9
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Make sure you get a copy of the appraisal and perhaps it can be used with another company.
I don't think you can use the appraisal with another company under today's practices. Seems stupid, but i think that is the way it works today.
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Old 09-20-2012, 06:34 PM   #10
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Quote:
Originally Posted by Mulligan View Post
Back in May I initiated refinancing with existing MegaBank (out of laziness) to lower rate from 5% to under 4%. All paperwork and appraisals were completed in early June. I was told it would close end of June. Well here we are in late September and they are still dragging their feet. Loan expiration was back in early August but "as a service to me since it isn't my fault" they are extending rate and terms indefinitely until close. Last month, I pitched a fit, and they said they moved mine into the "top priority". Some top priority as I still haven't heard anything back. At what point would you say screw you, I'm going somewhere else? It has been shear laziness up to now that I haven't shopped around, as loan amount is under 70% , my credit score is around 820, and income is no problem.
Partly I'm ticked because I know the only reason they are dragging feet as it is an in house refi, with no incentive to do it. Anyone have any thoughts on how to speed this up, or just tell them to bend over and kiss themselves and go somewhere else? I mean surely it doesn't take over 4 months for a refi in house does it?
This just about matches the situation we're in. Ours started in June. After nothing for two months, now keep getting new questions. I've had a fit, maybe three, too & have a phone conversation set up tomorrow. They've blamed it on being overloaded & I've said if that's the case, why did you solicit & take our application. Totally frustrated.
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Old 09-20-2012, 10:14 PM   #11
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I don't think you can use the appraisal with another company under today's practices. Seems stupid, but i think that is the way it works today.
+1
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