UPDATE: Does this sound fishy to you?

[acemcmac]

On a more somber note, I just got wind of the docs and was notified that
the lender had to bump our rate for the second to 9.75 which bumped our
payment for the second by XXX to a total payment of $XXX. They
said the 8.25% was only reserved for 95% LTV but ratesheets did not note
the LTV guideline when we locked at 8.25. Call me when you get this.

I didn't have the full 20% to only get one mortgage w/o mortgage insurance. It was cheaper to do two mortgages... 80/20, 6.6%(2 points financed)/8.25%. I was actually really happy with that arrangement as it leaves me both super liquid and with a very reasonably monthly

I'm more than a little preturbed that less than 5 hours from closing, one of my rates would jump 1.5%. What do you guys think?

Update:
So I walked into the titling office where we were going to close and was told that my broker and RA were already in a confrence room. I walked in and the mortgage broker immediatey began stammering. I held up my hand to indicate that he should shut the hell up and gently closed the door. Realizing that he was about to get the verbal lashing of his life when I turned back to him, he interrupted me in the middle of my first sylable of my speech, jamming a paper in my face.

8.2613% on that secondary

Problem resolved. I am now officially a home owner.

I am running out of goals to shoot for in my life and I'm only 20, but that's another thread

 

[waggy]

Originally posted by: acemcmac

On a more somber note, I just got wind of the docs and was notified that
the lender had to bump our rate for the second to 9.75 which bumped our
payment for the second by XXX to a total payment of $XXX. They
said the 8.25% was only reserved for 95% LTV but ratesheets did not note
the LTV guideline when we locked at 8.25. Call me when you get this.

I didn't have the full 20% to only get one mortgage w/o mortgage insurance. It was cheaper to do two mortgages... 80/20, 6.6%(2 points financed)/8.25%. I was actually really happy with that arrangement as it leaves me both super liquid and with a very reasonably monthly

I'm more than a little preturbed that less than 5 hours from closing, one of my rates would jump 1.5%. What do you guys think?

yeah it would bother me also

 

[halik]

hmmm sounds little too convenient....

 

[altonb1]

What happens if you refuse to settle today and push it back due to the financing snafu? If I was in that situation, I would have a FIT!

 

[teddyv]

My first mortgage broker did this to me. I was terrified of losing the loan, the house, etc. - so I just signed off on it. The second time around, for refinance, he did it again. When I got off the phone with him I called CitiFinancial (the current holder) and in twenty minutes had an offer 1.6% lower than his "best" with a quarter of his proposed closing costs (and because I refinanced with the current note holder did not have to pay the $1,800 deed filing tax/fee.)

I called him and told him it was off and he got REALLY upset. I told him about the 5.15%/30-year fixed CitiFinancial offer and he said "you're screwing me, I hope you're happy you sack of sh!@." I figured that little effort saved me about $700 a month (every month for the next 30 years.....)

I guess you could say I am exceedingly happy with CitiFinancial, they are easy to reach, provide all the docs I need when I need them (tax, etc.) and are generally just easy to work with - plus the call center is in the US. And since for benefits purposes they count amounts owed as amounts on deposit I now get all kinds of gold/superplatinum/blah blah benefits with my Citibank checking, brokerage and credit card accounts.

 

[Scarpozzi]

Yeah....he changed the agreement. Threaten to seek another lender. If you want to compare, PM me and I'll give you a 1800 number with where I financed my house...it's a credit union and THEY ROCK!

 

[rudder]

This crap gets pulled all the time. They know thet have you at closing time and are pretty sure that at that point you are so stressed and just want to get in the house that they will make a few extra dollars off you.

The little "we have to raise fees and rates" on closing day happened to me. I told the mortgage company to screw themselves and started the process over with another company immediately. The original lender came back and made a much better offer with less closing costs and a slightly lower rate within two days.

 

[SampSon]

That's a total crock of sh!t.
I would drop any lender that hikes my rates 1.5% just before closing.

 

[D1gger]

I used a mortgage broker only once to close on a real estate purchase, and had exactly the same experience. They baited me with a low rate, flexible mortgage and then switched at the last minute, saying that they couldn't qualify me for the mortgage after all of the assurances that we were good to go. I dumped them and negotiated directly with the financial institution and got the terms I wanted in about 3 hours.

Mortgage brokers are the slime of the earth.

 

[waggy]

damn i didn't realize this happened so often. I have never had it happen to me or anyone i know. but it could also be the place i have got my mortgage is the same my father has got his last 3 etc.

 

[acemcmac]

So what should I do? I had no idea that this was commonplace either! Closing in 4 hours and I'm chained to my desk at work until then! ANIC;

I also found out that the underwriter is a former employee of the brokerage. She left about 6-9 months after this broker came on board. He's always doing the evangelical sh!t and my relator (who referred me to him.. they know each other through their religious stuff) gets furious every time I challenge this guys integrity (which I have yet to do to his face).

 

[DrPizza]

Suggestion: Ask "is this normal? Regardless, I feel compelled to sign at the moment to close this deal. However, I'll be contacting the state board of (darn it... I'm not sure I've got this correct) board of banking and finance.

 

[acemcmac]

bump

 

[notfred]

If my mortgage payment was three digits, I wouldn't care. I pay more than that for rent on an apartment.

 

[dxkj]

get your ass in gear

take a half day

stay on the phones figuring out what your options are, find another broker

SCREW THIS GUY

 

[ruffilb]

Originally posted by: altonb1
What happens if you refuse to settle today and push it back due to the financing snafu? If I was in that situation, I would have a FIT!

 

[tweakmm]

Originally posted by: teddyv
I called him and told him it was off and he got REALLY upset. I told him about the 5.15%/30-year fixed CitiFinancial offer and he said "you're screwing me, I hope you're happy you sack of sh!@." I figured that little effort saved me about $700 a month (every month for the next 30 years.....)

"Doesn't feel good to be screwed does it? Karma is sure a bitch isn't it, bitch? ::hangup::"

 

[ITJunkie]

Originally posted by: dxkj
get your ass in gear

take a half day

stay on the phones figuring out what your options are, find another broker

SCREW THIS GUY

^I would have to agree^.
Call your broker back and say "I'm sorry but this is not what was agreed upon and I'm afraid it's a deal breaker."

 

[Dragoon42]

dude this is not normal. I've never worked for a mortgage broker but I have often heard that they are pretty bady. I use to do loans with a bank, and we would never pull any $hit like this. Unless the rates were based on prime and prime just went up that day or something. But then again, tha wouldn't exactly be a fixed rate loan. I'd tell your boss that you need to take some time to figure this out. Don't be worried about closing on the house, there's a $hitload of mortgage companies out there. This seems really fishy. I can only imagine what kind of lawsuit my bank would have received if we tried to pull some $hit like this. If we messed it up and it got to this point, we woulda eventually just ate the cost.

 

[QED]

Originally posted by: acemcmac

On a more somber note, I just got wind of the docs and was notified that
the lender had to bump our rate for the second to 9.75 which bumped our
payment for the second by XXX to a total payment of $XXX. They
said the 8.25% was only reserved for 95% LTV but ratesheets did not note
the LTV guideline when we locked at 8.25. Call me when you get this.

I didn't have the full 20% to only get one mortgage w/o mortgage insurance. It was cheaper to do two mortgages... 80/20, 6.6%(2 points financed)/8.25%. I was actually really happy with that arrangement as it leaves me both super liquid and with a very reasonably monthly

I'm more than a little preturbed that less than 5 hours from closing, one of my rates would jump 1.5%. What do you guys think?

Former mortgage broker here...

What you have here could be a very simple oversight by the broker or the lender... or either the broker baited you. Or the lender baited your broker, who in turn baited you. In any case, this should never happen-- unless the appraisal comes in way too low-- but even then you would know weeks before the closing.

Either way, I would call the second lender directly-- tell them that you were under the impression your rate was 8.25%, not 9.75%. Tell them that this is a dealbreaker for you. You will quickly find out if it was the lender or your broker who slipped up.

If they don't budge on their 9.5% number (which is quite likely if that is their true going rate), you pretty much have two options: take the 9.5% rate for now, and refinance it after closing-- or push closing back while you search for a new second lender (and possible broker).

I've been out of the business for a little while, but from all I've seen most lenders are charging at least prime + 2% for a 100% (actually, techincall 99%) HELOCs-- so that 9.75% is actually on target for what you are looking for.

 

[slsmnaz]

I actually had them add add .05% to the rate without telling me. Thankfully I read the docs at closing and forced them to change it. I kept every piece of paper they ever gave me from the start and it paid off.

 

[zixxer]

I would tell them to screw themselves.


I was really lucky and got a 4.5% fixed rate/30yr traditional mortgage....


with 1.5% down and NO pmi.. no 2nd mortgage or anything... this was about 6months ago (first time homebuyer deal)

 

[Stuxnet]

Originally posted by: zixxer
I would tell them to screw themselves.


I was really lucky and got a 4.5% fixed rate/30yr traditional mortgage....


with 1.5% down and NO pmi.. no 2nd mortgage or anything... this was about 6months ago (first time homebuyer deal)

... and next year it will be 5.5%, and then 6.5% the year after that .

Not that 6.5% is bad...

 

[HomeAppraiser]

Typical.

Three options:
1) Put 5% down for a 80/15 loan that meets the 95% LTV required for the original rate,
2) Ask that the Broker pay the points to get the lower rate you were quoted
3) Fvck em, start over

We got a HELOC a few years ago and the docs came back with an extra 1/2% on the rate "Underwriter adjustment, because your self employed" The loan gal retyped the rate page and we got what we were quoted.

Our first purchase mortage had an extra origination Point on the closing cost. Made them redo the docs to corrected.

See sig below.

 

[acemcmac]

BUMP