Having second thoughts of refi, HELP

mr_lee21 · Joined: 12 Mar 2005 Posts: 2

My Wife and I have been in our house for less than a year. We have two mortgages with really high rates, a 7.9% on one, and 11.9% on the other. We had debt that we wanted to consolidate and to try to roll the two mortgages onto one, so we tried to refinance. One lender said he would be able to refi and payoff some debt at a 9.99%. We signed some papers and it went to uderwriting like a month ago. He has not communicated well with us but because he was the first to say he can help we stuck patiently with him the whole month. That's all the numbers I know and I have asked for a good faith estimate and am still waiting for it.
During that month, I was contacted by a previous loan officer so I decided to get a comparison. He said he'll be able to just roll the two mortgages but at a much lower rate of 8.5%, and no cash for debt consolidation. And I got the good faith estimate from him, without much headache.
The first lender has contacted me back and said the loan has been approved but he needed my recent paystubs. My Wife and I want out of the first lender. How would we get out legally after the loan has been approved? I was told by the second lender that he would be able to give me better rates but would like to see the other good faith estimate. The second guy is a lot more helpful and tells me everything thats going on and gives me the numbers straight. The first guy doesn't tell me anything unless I ask, and all I know to ask is the rate, monthly payment and that's pretty much it.

Thanks for any help.

The Mortgage-Pro · Site Admin Joined: 19 Jan 2005 Posts: 2248

As a consumer you are never obligated to take a mortgage. The only thing you would be out of is your appraisal fee, if you paid for it.

Even at the closing table, you can walk away from the deal if anything has changed since your original good faith estimate.

A mortgage is a big financial transaction you should deal with amortgage professional that is easy to communicate with.

mr_lee21 · Joined: 12 Mar 2005 Posts: 2

So even though the loan was approved, and we paid for the appraisal, we can just walk away but we just lose the appraisal? By the way, I'm from Minnesota just in case the laws are different.
My wife and I still would like to refi and payoff some debt, or all debt if possible. Any suggestions?

The Mortgage-Pro · Site Admin Joined: 19 Jan 2005 Posts: 2248

Even after you sign documents at the closing table you have three days to rescind the loan. This means you have three days to decide if you feel comfortable with the terms of the loan. As a consumer you are protected here.