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Can I back out of my refinance?

When I started the process my lender told me the best option would be for me to do a 25 year refinance instead of my current 30 year.  Three weeks into the process, underwriting comes back and says I can't do the 25 year and have to stick to the 30 year. 

Even though closing is within a week, can I say I don't want to do it anymore?

I haven't paid a dime.
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November 19 2010 - US
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Yes.  You are not obiligated to move forward with the transaction.  I have heard of lenders disclosing a charge of 1% if they deliver the loan and you don't accept (this is almost impossible to enforce and I personally have never seen it happen).  Plus, your original agreed upon terms were for a 25 year, not a 30 year

Hope this helps..
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November 19 2010
You can back out of the deal even after the closing.
EVERY refinance transaction has 72 hrs (3 days) rescission period, for borrower to cancel their transaction.
Not that I am suggesting to come to that last minute.
But if there is clear evidence that you are NOT getting what you asked for and what was promised to you, unless you authorized rate lock and therefore the terms of your deal, without acceptable explanation, get out of the deal.

Good luck
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November 19 2010
Three Yes's - I backed out of mine, agreed to pay for the appraisal, but the rate had dropped and the bank would not adjust the rate, and I saved a ton money in the long run. Your Lender is not providing what you asked for and therefore you have a right to back out without any costs.
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November 19 2010
I never understand this part of the business. 
Is the 25 yr vs the 30 yr the only issue?
There must be a benefit to you or I could not do the loan.
So having said that ~ do you know that you can pay any mortgage - irregardless of how it is put together - per your own plan as long as the payment exceeds the required payment. 
As an example you can get a 30 yr mortgage and make the payments so that it is really a 15 yr. or a 20 or a 25 or a 10.  The way the systems of servicing companies are set up they automate it.  Whenever I put in a link the ZILLOW Gods come and zap me -  soooo go to google and type in "download HSH calculator suite"  - ignore everything on the page except where it says the words "download"  It's free and you'll love it. 
You can play like crazy with payments -- Enjoy!
Sincerely,
Celia
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November 19 2010
fdxramper, you posted on 11/4 saying you were getting a 4% rate and a credit for the closing costs. You also stated earlier you have owned the home for 1 year, paying 5.5% now. If that information is correct it would be a huge mistake to cancel the refi just because someone told you the best option is a 25 year ( It's not ). Help yourself and close the loan if you are getting those terms.
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November 20 2010
I agree with the Clay!  Why pass up on that refi because you have to have 360 payments scheduled rather than 300...You can make the payment as if the term is 25 years and achieve whatever benefit you think the 25 year term provides you.
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November 20 2010
Profile picture for FDXRAMPER
"I never understand this part of the business. 
Is the 25 yr vs the 30 yr the only issue?"


No. The lender has to save me 5% in order for me to do the refinance and I'm just shy. I am now told I would have to bring $2,000 to the closing which I didn't know before.

I will be saving roughly $130 a month if I refinance but its going to take me roughly a year and a half to get that $2,000 back.

When I started this I was told no out of pocket costs. 


And Clay, I'm at a 5% not 5.5%, not sure where you got that from.
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November 20 2010
My bad, you posted on a 5.5% - 4% thread which I thought was your thread. The rate drop from 5% - 4% is enough for 5% payment drop but is it not 5% total due to higher monthly MI? 
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November 20 2010
EVERY refinance transaction has 72 hrs (3 days) rescission period,

I hope someone refinancing their investment property doesn't think that statement applies to them. They'd be in for a shock.
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November 20 2010
You can, but if your looking at closing in a week, is 5 years on your payments worth having to start over. You would be looking at another probable 30 days and if your ready to move, have you given notice where you are? Can you stay? How about the sellers?  You better check to see if they will give you an extension. Pulling out now could put you jeopardy of loosing this property. I would suggest that you sit down with your lender or if your doing this on the Internet find a local lender that will talk to you. You should be able to figure out how paying extra on your payments each month so you can cut that 5 years of interest off without loosing your house.
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November 20 2010
Kathy, the post reads:

Can I back out of my refinance? 

Can I back out of my refinance?

Can I back out of my refinance?
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November 20 2010
 
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