Posted by River City on November 17, 2003 at 09:49:24:
No. All applicants have the right to rescind transactions on refinancing their residences. $400 also sounds a little steep to cover the cost of appraisal and credit report. Ask them if you are entitled to the difference in the cost and what you paid.
Cancelling a Bad Refinance Deal - Posted by Joe Roark
Posted by Joe Roark on November 16, 2003 at 15:24:05:
About two weeks ago I called a refinance company to see about refinancing. My middle credit score is just under 620, so I wanted to know if the company could come up with a good deal. I had to pay $400.00 up-front, but was told I was told I would get that back if they couldn’t approve it. I paid via credit card. The loan they came up with saves me only 120 per month and adds 7,000 to my balance. I told them that I may be moving in about 2 or 3 years. The salesperson basically pushed this thing on me and told me I was still better off because value goes up and my interest rate is lower now, etc. I have not physically signed anything. I did, that night, “electronically” sign documents so they could start the loan process, etc. I realize now this is a bad deal. I think they just got my appraisal results Friday. I just now sent an email telling them that I will be moving and do not believe this is a good deal. I asked them to cancel the loan process. MY QUESTION: I realize the 400.00 is gone–Can they hold me to anything else?