Financing in New York>Question Details

jessiew, Home Buyer in New York, NY

Hello, my truth-in-lending says THERE IS NO GUARANTEE THAT YOU WILL NOT BE ABLE TO REFINANCE TO LOWER YOUR RATE AND PAYMENTS. What does it mean?

Asked by jessiew, New York, NY Mon Apr 1, 2013

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10
I don't care to buy it means nothing to me just looking. To rent nothing last forever!
0 votes Thank Flag Link Sun Aug 25, 2013
I think you are right to ask questions - and "don't worry" is not a good enough answer.
While Truth in Lending is a federally established form, it is not the clearest or best form in creation.
I think Tom is on re. what it is trying to say.

Another place to look at is APR vs. your note rate.
These two rates are different.
APR shows how much you are paying in closing costs to get your note rate.

You can look around to see if your APR is low enough, and if it is not, then maybe
you should talk to your loan officer to see if there are any "fat" fees, that can be eliminated or reduced.

Hope this helps,

Irina Karan
Beachfront Realty, Inc.
305-904-2355
0 votes Thank Flag Link Mon Apr 8, 2013
Just got the answer from my loan officer. He said this is a standard disclosure and nothing needs to worry about.
0 votes Thank Flag Link Mon Apr 1, 2013
Why not simply ask your loan officer, and or attorney, for any necessary clarifications...
0 votes Thank Flag Link Mon Apr 1, 2013
I have a referral at Chase who would be happy to answer any questions you may have. Tell him Yul referred you.

Jason Han
Chase Mortgage Banker
Cell: 516-459-7826
Email: Jason.han@chase.com
Website: http://homeloan.chase.com/jason.han
0 votes Thank Flag Link Mon Apr 1, 2013
It means that someone is trying to imitate an Attorney.
It means that someone didn't do very well in their English classes.
It means that there is Red Flag; are there others?
0 votes Thank Flag Link Mon Apr 1, 2013
It means: You may be stuck with this interest rate for the life of the loan. We're not promising that you can refinance to a lower rate. If it's an adjustable rate loan, you may be stuck with it readjusting upward. No one should be promising that you can refinance it when it's about to go up.

Hope that helps.
0 votes Thank Flag Link Mon Apr 1, 2013
Don Tepper, Real Estate Pro in Burke, VA
MVP'08
Contact
Thank you, Annette.

Sorry, it's a typo. You are right. There is no 'NOT'. It says THERE IS NO GUARANTEE THAT YOU WILL BE ABLE TO REFINANCE TO LOWER YOUR RATE AND PAYMENTS.

Is this a standard disclosure on the Truth-in-Lending? I understand that no guarantee doesn't mean I can't, but for example, in the future if the rate drops significantly, can the lender turn down my refi request to lower the rate because of this disclosure?
0 votes Thank Flag Link Mon Apr 1, 2013
Nice Catch
Your probably the only one who has read it. Report it to the lender/loan officer
0 votes Thank Flag Link Mon Apr 1, 2013
Jessie,
ARe you certain the statement is "no guarantee that you will NOT be able to refinance..."
As we all know, two negatives equal a positive. Sounds like you may be able to refinance!

Most likely you have inserted one too many negtives, which would mean, as the 2008 crash demonstrated, the banks will promise and never deliver. DON"T PLAN ON REFINANCING AS A STRATEGY FOR THIS PURCHASE.
0 votes Thank Flag Link Mon Apr 1, 2013
Thank you, Annette.
Sorry, it's a typo. You are right. There is no 'NOT'. It says THERE IS NO GUARANTEE THAT YOU WILL BE ABLE TO REFINANCE TO LOWER YOUR RATE AND PAYMENTS.

Is this a standard disclosure on the Truth-in-Lending? I understand that no guarantee doesn't mean I can't, but for example, in the future if the rate drops significantly, can the lender turn down my refi request to lower the rate because of this disclosure?
Flag Mon Apr 1, 2013
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