I am refinancing my home for 3.125% 15 yrs fixed; the appraisal is done but I did not sign any document; i found a banker who would offer 2.875%

Asked by Resident, San Diego, CA Thu Oct 4, 2012

I did not sign any doc; i want to go with the 2.875. Can the previous mortg person sue me for leaving?

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, ,
Tue Oct 16, 2012
Great answers below. It is correct that no lender has any recourse if a borrower decides not to follow through with closing a loan. However, the comments regarding the three days right of rescission are a bit misleading. RESPA only requires the three days right to cancel on owner occupied properties. The law does not apply to second homes.

@Steve nailed it...any lender/loan consultant can "Say" anything...loan rates move constantly. The rate quote provided at 9:00 am may mean nothing at noon of the same day!

Deborah Garvin
NMLS #279125
(619) 787-8212
0 votes
Janet McCart…, Agent, San Diego, CA
Sat Oct 13, 2012
Hi,
Ask the broker if he can match the lower rate. Most brokers who have a deal in process will find a way to make it work, however you might want to wait.
The new Fed. Stimulus program is pouring $40 billion in to buying mortgage backed to securities in order to lower the interest rate.
check out all the details at
http://www.BestSanDiegoHomesGuide.com
Best to you,
Janet McCarthy
Professional Realtor
Connect Realty
jmccarthyhomes@gmail.com
858-243-5719
0 votes
Steven Ornel…, Agent, Fremont, CA
Thu Oct 4, 2012
Hi Sochenda,

Anybody can be sued; however, it's extremely unlikely this would take place given you loan rescission rights.

MORE IMPORTANTLY, unless you have both lenders quoting you a rate at the same time, for the same loan product, and with or without points, you are doing yourself a major disservice.

The fact is loan rates are driven by random world events which can change Mortgage Backed Securities pricing, which in term affects mortgage rates.

See:
http://docs.Steven-Anthony.com/SAR-HowMortgageRatesAreDeterm…
http://docs.Steven-Anthony.com/RateShopping-DoItRight.pdf

BTW, you may also want to base your decision on the following info:

"Retail Banks vs. Mortgage Broker/Bankers"
http://tinyurl.com/6qln6nd

Personally, I only work with Mortgage Broker/Bankers.

Best Regards, Steve
0 votes
John Juarez, Agent, Fremont, CA
Thu Oct 4, 2012
I agree that you should give lender no. 1 the chance to meet the lower rate before you run to lender no. 2. Make sure that no. 2 is not charging any additional fees that you would not be paying to #1.
0 votes
Nick Gandhi, Agent, Stamford, CT
Thu Oct 4, 2012
They cannot sue you, however if you give them a comparison, perhaps they can match that rate.

Be careful with the lower rate and do the research - make sure you know all of the hidden fees as well to make an apple to apple comparison.

Best of luck!

Nick Gandhi
Equity Capital Real Estate
(203) 280 3838
0 votes
Jeff Zemecus, Agent, Fresno, CA
Thu Oct 4, 2012
There is a 3 day right of rescission in the loan documents that will allow the borrower to back out of the loan once the documents are signed. If for any reason the borrower is unsure or not comfortable with the loan documents or its proposed agreement it is completely up to the borrower to sign or not. No the lender cannot sue you for not signing the loan documents.

Sincerely,

Chris Boudreau, GRI, ABR, SFR
Foreclosure & Short Sale Specialist

Website: http://www.SanDiegoKey.com
Facebook: http://www.Facebook.com/Chris.A.Boudreau

Cell: (858) 736-5393
Email: Chris@SanDiegoKey.com

License # 01273956
0 votes
Hector Gaste…, Agent, Coronado, CA
Thu Oct 4, 2012
No, but karma will

Hector R. Gastelum
Realty Executives Dillon
REALTOR #01382940
hectorgastelum@yahoo.com
619-954-2225
125*142*10754
efax 619-270-2516
0 votes
, ,
Thu Oct 4, 2012
Unlike on the real estate side there is no Buyer / Broker agreement for lending. You can change and cancel at any time for any reason even up to 3 days after you sign the final loan paperwork.
0 votes
Kari Shea, Agent, San Diego, CA
Thu Oct 4, 2012
Hi,

They may be able to charge certain fees as you must have signed something to get the process started. Ask the lender you are with to match it and see what they say.

Best of luck,

Mark & Kari Shea
Shea Real Estate
Serving Greater San Diego
0 votes
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