Posted on 07/29/2012 9:09:44 AM PDT by dagogo redux
Has anyone else here had the experience recently of having one of the large banks jerk them around on a home re-finance application?
We’ve been at it for months now with Chase, with a constant, ongoing drip, drip, drip of requirements, including updates on many previously-submitted documents since the process has been going on now well into a new quarter. Discussing this with some friends this evening, it seems they’ve had exactly the same hassles with Bank of America for over six months now, and have been through several rounds of re-submitting updated documents.
Our friends and us both have multiple personal and business accounts of longstanding with these banks, have always paid bills on time, have been loyal customers that have brought a lot of business to the banks, and have refinanced before with them a few years ago. All four of us have great incomes and excellent credit ratings. The pending mortgages are for about the same amount as the current mortgages, and are for a fraction of the appraised value of the house. In both cases the household incomes are many times what is needed, and the mortgages are backed with huge emergency funds.
Despite a sizable, non-refundable application fee, we and our friends are close to simply walking away from the application process, closing all our accounts, and taking our business to one of the remaining local banks. Talking to local bank representatives gets nothing more than evasiveness and excuses that don't seem to hold water. We are also on the verge of contacting the Better Business Bureau, bank regulators, as well as state and federal Congressional Reps.
USBank has never resold my loan nor taken bailout $ (that I know of)
rate was 3.5 for 30 yrs. (VA loan) $3k closing
VA has some special rules involved.
We did a VA streamline re-fi, so our costs are much lower than traditional mortgages. However, the original VA mortgage also closed in two weeks. Our total cost to re-fi was 3% and the original was less than that.
Don’t refi with the same people who hold your current mortgage. They have no incentive to make it easier for you to pay them less money. Tell them that you’re thinking of applying elsewhere and see if they move any quicker.
This is my official POST #10,000 on Free Republic.
Either I am an astute and knowledgeable person who enjoys sharing my wisdom with the masses, or I just have way too much time on my hands. Either way, I love round numbers.
I assume you would like additional information on my Refinancing experience with Cash Call.
Both Refi’s were completed in less than 30 days. These were “no cost” loans, not even an appraisal fee. If the appraisal is too low, you can walk away without spending a dime. Other Lenders will charge you up to $400 for the Appraisal whether you get the Loan or not.
I believe, and you will have to check on this, that Refinancing requires 70% Loan to Value. It could be 80%, but I know the lenders have tightened up the rules so they aren't left holding the bag if the Loan isn't repaid.
For instance, if your House appraises at $300,000, they would loan you $210,000 at 70% LTV. At 80% LTV, you could borrow $240,000.
The only “costs” you would incur are Property Taxes and Insurance to fund the required Impound Account and Prepaid Interest. If I'm not mistaken, they need One Years Insurance and Six Months of Property Taxes at closing. Hope that helps.
Right You are, thanks very much
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