Can I stop the refinance process once I signed the applications?
VirtueOfIntolerance asked:
My mortgage broker talked me into refinancing from 6 to 5%. It’s not a bad deal, but I’m having second thoughts about it because I don’t like how they’re rolling the FHA fee into the loan. Anyway, I already signed the papers and the closing is supposed to happen at the end of the month, but if I decide to back out, what will happen?
Also I would appreciate more opinions on whether I should refinance or not. Here’s te link to that question.
I guess it won’t let me post a link to it.
CLAUDE
My mortgage broker talked me into refinancing from 6 to 5%. It’s not a bad deal, but I’m having second thoughts about it because I don’t like how they’re rolling the FHA fee into the loan. Anyway, I already signed the papers and the closing is supposed to happen at the end of the month, but if I decide to back out, what will happen?
Also I would appreciate more opinions on whether I should refinance or not. Here’s te link to that question.
I guess it won’t let me post a link to it.
CLAUDE
Comments
11 Responses to “Can I stop the refinance process once I signed the applications?”
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ROBERT
you can withdraw from the loan since he is out nothing at this point as there was no appraisal
ALEX
yes,[there may be fees] you can cancel up to 3 days after you actually sign loan docs
NATHAN
Get out your papers and look to see if ther’s a clause in there that says something about buyer backing out or along those lines, i’m pretty sure there’s gotta be a clause in there that will explain your options, look at your paperwork!
MICHEL
Yes, you can back out.
Nothing is final until the closing. You signed an application, not a loan contract.
Just be aware that there may be some non-refundable fees that you would lose if you back out. Typically the lock fee (for locking the interest rate) and the appraisal fee are non-refundable. You should only have to pay for an appraisal if the appraisal was actually performed. If you do pay for an appraisal and then back out, its possible the results of the appraisal can be used in another loan application process, thus saving you from paying the fee next time.
If you are at 6% right now and you have enough equity to qualify for a refinance at 5%, I’d say its worth it as long as you plan to stay in your house for at least 5 years and as long as you don’t get screwed with unfair closing costs.
JOSE
You can cancel at any time. Put it in writing to all parties. You lose the application and fees paid, but that’s it.
There are costs to doing a refi. . . .you will NOT actually be saving money by re-fi’ing UNTIL you recoup the additional costs, a year or more out. A FULL point is minimum difference needed to benefit by refi.
You always have a choice of rolling the FHA fees into loan or paying it outright. Putting them in loan means you don’t have to come up with money, BUT you are increasing the principal amount of your loan.
EARL
Where you will get into trouble is with “Balloon Payments” and UN-fixed rates. Do not go for anything with a revolving rate right now. As long as you don’t have those it may be in your best interest to take the refinance. Also, and I could be wrong but you may have your mortgage extended by the rolling loan? Not sure about that.
Now, if your getting cash back that you don’t really have to have at this point, and one of the above mentioned situations don’t do it. You have 24-72 hours to back out, but you will have to argue with them.
WILBUR
You can always cancel — even up to 3 days after signing in escrow as already posted !
If you are concerned about the FEES rolling into the total amount owed, since your monthly payment went down, continue making the same payment as you were and the house will payoff sooner.
On a 100K loan you save about $70 per month which was just interest.
With interest savings that is about a $1000 a year in savings.
You can figure your savings and decide here ——
LEOPOLDO
I think first of all you have to contact your mortgage lender what they guide.
Your loan will normally close shortly after you have signed the final loan documents. On an owner occupied refinance & home equity loan transactions.
Good Luck……!
JOEL
Your mortgage broker won’t be happy because he or she planned to make some money from your refi. You can cancel as long as you haven’t signed the final paperwork. What you should do is call the Attorney General in your state and ask a few questions. You need to make sure that your original loan isn’t cancelled by the mortgage broker because they are mad. Just ask a few questions.
GUY
You can back out at anytime prior to signing the closing papers. Once the loan has been closed, you are obligated to pay unless you can prove some kind of deception surrounding the loan which would have to be done in court via a lawsuit.
MORRIS
I think first of all you have to contact your mortgage lender what they guide.
Your loan will normally close shortly after you have signed the final loan documents. On an owner occupied refinance & home equity loan transactions.
i will link you
Good Luck……!