     Anonymous | Saturday, March 11, 2000 - 07:17 pm 
Hi,
I applied for a mortgage couple of days ago but I want to back off because I don't want to buy the property any more ( I haven't signed the final contract). Along with my mortgage application, I paid $2000.00 as the rate lock-in fee which would be refunded at closing. But since there is no closing, can I get the money back? Thanks.
NERVOUS |
| Christine Baker (Admin) | Sunday, March 12, 2000 - 12:57 am
I HOPE you got your money back!
Why would you pay that kind of money? I've never seen anything like that .... |
| Anonymous | Tuesday, March 14, 2000 - 06:46 am
The refund policy of your application fee is usually stated right on the application - and it's usually a non-refundable application fee.
You may also be in a pickle regarding the rate lock agreement. Read the agreement. It should include verbage regarding it's refund. Ours stated that the lock fee was totally refundable under any condition other than if WE cancel the application/mortgage before closing (regardless of whether or not a closing date is actually set). "Signing a final contract" means nothing if the rate lock agreement specifically states that it won't be refunded if YOU change your mind.
You get it back if you don't get APPROVED for the loan. You didn't do something silly like tell them you wanted to chagne your mind BEFORE you found out if you were approved or not but AFTER you paid the rate lock deposit, did you?
CB - 1 percent is a typical deposit for locking a loan rate. A $200k mortgage would require a $2000 deposit for the rate lock. |
| Christine Baker (Admin) | Tuesday, March 14, 2000 - 09:37 am
What happened since 1997?
As a California mortgage broker licensed by the DRE I was NOT allowed to collect as much as a penny.
Subsequently, never ONCE have my clients paid as much as a penny for a loan they didn't get.
I do recall that some wholesale lenders referred to cancellation/lock fees on their rate sheets, but it never became an issue.
I find it hard to believe that a 1% lockfee is typical.
Anonymous, where are you? And what is your expertise? If you know so much, why don't you post your name and company?
BUYERS should NEVER pay any fees other than for credit and appraisal prior to closing. |
