Close refi on Monday, start new refi on Tuesday... what then?

If this was sent to you post closing, it's invalid. The Closing Disclosure ( CD ) you received before signing your final documents likely DID NOT include a prepayment penalty. One cannot be added in post close CD.

If a prepayment penalty was indicated on your CD, but not explicitly disclosed as this notice appears to, this still is very problematic. 

If this prepayment penalty notice was not on your pre close CD might I be so bold as to suggest you engage an attorney on the matter. You may be surprised what the lender will offer you as a resolution over this gigantic screw up on their part - such as a complete payoff of your loan to keep this whole thing quiet.

My .02c
 
This appears to be a bait and switch - paired with the "bum's rush" coming up at hour zero. While it's legal, it's also not cool. If a prepayment penalty is added, a new Closing Disclosure must be generated and waiting periods may apply. If you acknowledged your CD on-line, but did not download and review it thoroughly, the earlier produced on-line CD should also show a prepayment penalty.

Disclosure timing on this issue is key. You are supposed to get notification of a material change in terms with time to review. Note that signing is not committing. You have time to get to the bottom of this should you wish to pursue this further. Example? What rate would I get without a prepayment penalty? A simple question.

If you are concerned about the prepayment penalty, you can also sign your right to cancel document which has the same impact as terminating the deal. Check with your loan officer about this. If the answers you need aren't provided, you'll need to climb the ladder about it.

My .02c
 
Who are you going through - if you don't mind sharing. Seems like a total bait and switch and given I'm in the midst of the process am hoping you don't list the name of who I'm working with haha. 
 
Anyways, I signed the docs and done. This lender gave me a great deal back in Aug for 2.5% no cost. Although it took almost 2 months, which I am finding as quite normal with the backlogs at various stages, I think he did a good job overall. I Didn't like the 6 month clause to prevent a early payment, but I kinda accepted and moved on.

Interestingly, Owning retention dept reached out to me yesterday saying they can get me 2.25 rate for 30 yr fixed.....
 
The lender my owning refi got sold to (PHH) has a really cool dashboard that makes it easy to make one time payments, add extra principal payments (either with the monthly or any time), and shows you the impact on your loan, your number of payments remaining, and the loan payoff date. 

I put extra principal payment for my first month and I can already see it adjusted my loan payoff date.  Pretty encouraging tool to use as it makes me want to payoff faster.  It?s way better then what I had at my previous lender.
 
Irvinehomeseeker said:
Anyways, I signed the docs and done. This lender gave me a great deal back in Aug for 2.5% no cost. Although it took almost 2 months, which I am finding as quite normal with the backlogs at various stages, I think he did a good job overall. I Didn't like the 6 month clause to prevent a early payment, but I kinda accepted and moved on.

Interestingly, Owning retention dept reached out to me yesterday saying they can get me 2.25 rate for 30 yr fixed.....
Click to expand...

I signed the loan docs last Tuesday with Transunited but I am having a very hard time getting a status from this lender if the loan actually funded. I am now in a dilemma because I have another lender that I started the process about 10 days ago as a back up in case this Transunited fails to deliver but now now that I have signed the docs already and its past 3 days I cannot cancel the laon. Am I now  at the mercy of Transunited to fund the loan? Appreciate any thoughts or suggestions.
 
It's been 2 weeks since I signed the Loan docs but the Loan is still not funded. In all my past refinanced, loans funded with 5 days of signing. I am past the 3 day cancel option. Should I wait more days till it funds or start process with another lender?
 
They tell me for sure it will fund by end of the month. There has been so many delays through out the process, like I was initially told 1 month to close  but the closing disclosure came through only after 2 months. Is it lenders are still backlogged leading to funding delays?
 
He/she said 2.5%.

If you signed the doc, it will get funded eventually unless there is a mistake or errors in doc which then you'll have to sign again. What would be the potential loss if funding is delayed?
 
Irvinehomeseeker said:
@Mety - No loss for me. I am just worried in case the lender won't fund at all and I miss out on the low rates currently trending.
Click to expand...

I think your signed rate will stay and it will get funded soon. Backing out with possible penalties sounds more harmful at this point. Just a personal opinion.
 
Mety said:
Irvinehomeseeker said:
@Mety - No loss for me. I am just worried in case the lender won't fund at all and I miss out on the low rates currently trending.
Click to expand...


I think your signed rate will stay and it will get funded soon. Backing out with possible penalties sounds more harmful at this point. Just a personal opinion.
Click to expand...

The entire industry is suffering a backlog for funding and processing. It will be done, just need more time.

 
Lenderfi is offering 2.0% with $23,666 points for 30-yr fixed conventional now. Do they usually roll over the points into the loan amount instead of you paying out of the pocket?
 
You must log in or register to reply here.
Back
Top