Posted on: 05th Jan, 2007 08:45 pm
i had purchase a home for $85,000. initially it seemed that the mortgage lender would help me to save my money. but at closing, i found that he has given me two loans – one at a high interest rate ($70,000) and the other an interest-only loan for $15,000. the oan was sold to another lender at closing. should i wait and then refinance or should i refinance the first loan into 30 year fixed rate loan. but i will have to pay prepayment penalty. does that mean i will have to pay $4000 no matter when i refinance?
The prepayment penalty is perhaps the same amount whether you refinance now or afterwards.
Hi Jason,
Welcome here.
You may check out the loan documents and good faith estimate of closing costs and find out if the lender has provided you the services he has initially offered to. Also, verify if all terms and conditions in the paperwork are met with.
By the way, how can the lender offer you two loans when you have actually apply for a single loan? Just check what is written on the paperwork, so that you can charge him on this issue.
Thanks,
James.
Welcome here.
You may check out the loan documents and good faith estimate of closing costs and find out if the lender has provided you the services he has initially offered to. Also, verify if all terms and conditions in the paperwork are met with.
By the way, how can the lender offer you two loans when you have actually apply for a single loan? Just check what is written on the paperwork, so that you can charge him on this issue.
Thanks,
James.
Did the lender offer you a different rate from what was initially promised to you? Did you lock in at a different rate and get another rate. Well you can ask the consumer affairs division of your state to review the loan transaction.
Hi Jason,
You can refinance the first loan into a 30 year fixed rate mortgage right now provided there isn't huge amount of prepayment penalty involved if you pay off the first loan so quickly. Also, if the interest rate on your first loan is lower than the rate you may get on the new loan, then this is not be the right time to refinance. In that case, you may wait till rates drop down.
"Does that mean I will have to pay $4000 no matter when I refinance?"
The prepayment penalty will be the one which the lender has mentioned at the time of signing the loan documents. Just check out the loan documents, you may find it there.
However, if you have been offered two loans instead of one, well then you should file a complaint with the Consumer Affairs Division of your state. You will get a complaint form at http://www.fyiconsumer.org/Forms/2006/ComplaintFormLV.pdf .
Hope I could offer some kind of help.
Thanks,
Caron.
You can refinance the first loan into a 30 year fixed rate mortgage right now provided there isn't huge amount of prepayment penalty involved if you pay off the first loan so quickly. Also, if the interest rate on your first loan is lower than the rate you may get on the new loan, then this is not be the right time to refinance. In that case, you may wait till rates drop down.
"Does that mean I will have to pay $4000 no matter when I refinance?"
The prepayment penalty will be the one which the lender has mentioned at the time of signing the loan documents. Just check out the loan documents, you may find it there.
However, if you have been offered two loans instead of one, well then you should file a complaint with the Consumer Affairs Division of your state. You will get a complaint form at http://www.fyiconsumer.org/Forms/2006/ComplaintFormLV.pdf .
Hope I could offer some kind of help.
Thanks,
Caron.