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From The Ash…, Both Buyer and Seller in 11369

Correcting a Refinancing Mistake?

Asked by From The Ashes, 11369 Tue Mar 5, 2013

I refinanced my home to try and purchase another property, but the deal went through after the refinanced was approved and funded. I took money out (approximately $100k) to try and purchase the new property and my mortgage payment increased by $500. I want to undo this refinance, but don't know if I'm stuck or if I have options, I'd like to go back to my pre-refi loan payment and want to know if I can pay back the money and if this is possible. Thanks in advance!

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6
Regarding Tony's response, I'm very doubtful that the lender will re-amortize the loan. If you apply the $100k towards your principle, you'll simply shave off time on your scheduled payments, but the payments will remain the same. I would like to hear back on what the lender's response was.

Javier Meneses
Senior Loan Officer
NMLS #23130
STERLING NATIONAL BANK
310 Crossways Park Drive
Woodbury, NY 11797
jmeneses@snb.com
(516) 606-9648
1 vote Thank Flag Link Tue Mar 5, 2013
Well, the “right of rescission” period is a provision under the Truth in Lending law that essentially gives homeowners who are refinancing their mortgage a chance to mull things over before committing 100% to the new loan terms. So you have 3 days AFTER the you sign closing documents to pretty much cancel the refinance. This is only limited to you primary residence only.

If you're already passed this point (3 days after closing) then you might be stuck with the refinance. Consider speaking to an attorney and see what your options are.

Javier Meneses
Senior Loan Officer
NMLS #23130
STERLING NATIONAL BANK
310 Crossways Park Drive
Woodbury, NY 11797
jmeneses@snb.com
(516) 606-9648
1 vote Thank Flag Link Tue Mar 5, 2013
Have you considered a discussion with your loan officer...why rely on unpersonalized online information...
0 votes Thank Flag Link Tue Mar 5, 2013
Thanks Tony! I'll definitely look into that.
0 votes Thank Flag Link Tue Mar 5, 2013
You should have thought of these things before you sign an agreement for the mortgage.
0 votes Thank Flag Link Tue Mar 5, 2013
Hi Justin
Unfortunately once the refinance is closed you are stuck with the new loan. And in NY since the cost of refinancing is so high iot probably wouldnt make sense to re-refinance.

However, you can contact your lender and explain the situation. If you were to take the $100k and apply it towards your loan balance, ask them if they will re-amortize your payment - this means taking the new balance and equalizing the payments over the remaining term of the loan. This should bring those payments down.

Another option is to hang onto the money and invest it. Pay off any credit cards or debts that you are paying a higher rate on. If you are paying 3.5-4.0% interest on your mortgage it shouldn't be too terribly hard to invest the money and get a greater rate of return. Put that money to work for you! Then if you find another property you can move quickly and pay cash for it.

Just a couple ideas. hope this helps!
Tony
0 votes Thank Flag Link Tue Mar 5, 2013
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