Wednesday, December 4, 2013

Refinance from Hell

In October I went to do a home refinance with my current lender, Nationstar Mortgage. The rate was 4.5%, a significant savings over my current rate. At closing the paperwork was a little messed up, but the big problem was that although they set my signing date for the end of the month, they set the actual date for the refi to occur on the 4th day of the next month. This was a problem for me because, coming out of an FHA loan, all interest for the month is paid on the first day. So I'd have ended up paying $1700 for that. On top of that, the adjusted origination charge (read that as, very roughly,  "how much you pay to get this loan rate") was another $1700 I'd have to pay. In addition, rates had gone down a bit since I started the process, something my lender neglected to tell me.

When you refinance you're given a 3-day grace period to rescind the agreement. So I rescinded. I gave Nationstar a chance to get me a better rate but they "couldn't", so I ended up getting a different loan quote from Crown Mortgage, at 4.125% and an adjusted origination charge of (-$1800). That's right, they'd pay me. When I let Nationstar know this, they suddenly could get me a better rate, but I declined.

Since I'm writing about it here, you know it screwed up more. Crown couldn't get the payoff amount request to go through at Nationstar, so I had to call. Only to find out that Nationstar never processed the recission. It took weeks to settle this, and by that time mortgage rates rose, and loan costs rose. A 4.125% loan now costs me 0.25% of my loan instead of paying me. Sigh. So now, in order to get a better cost, I'm getting a higher rate. I'm getting a 4.5% loan again, but this time the adjusted origination charge is ($-1700). Hopefully at the end of this month.