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Rate lock extension fee

We are almost at the end of our refinance (should be done by end of this week), but our 60 day rate lock expired. B of A wants to charge us 0.25 points for a lock extension. We did have a subordination for a 2nd loan that took about a week to complete, but my biggest gripe is that it took them 42 days from when I initially locked to have an appraiser come out.  And then 47 days before the appaisal came in. Should I be responsible for paying this fee? The broker initially told me that the appraisal would be done within 1 week (not 6).

Thanks!
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March 21 2010 - US
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Replies (6)

this is so bogus...call them on it, and let them know you are wlling to go to another lender based on this additional "fee"
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March 21 2010
It's common, not bogus. You may have to pay it. Thank your congressman for the appraisal delay.
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March 21 2010
Even though broker/lender was overly optimistic that appraisal would be done in a week, it was prudent that your lock was for 60 days. That should have been more than enough time to close the refinance, so it is an example of BoA's longer than normal time to get a refinancing done.
That aside, the real question is how good is the loan terms you are locked in on. If you can't beat terms by .25 pt. lower cost, it might be your best option.  You didn't mention rate or loan amount so not possible to know how today's  current rate/cost options would compare with your locked in terms. That may give you some ammunition.
If your only question is should you pay it, the only answer is who else has offered to pay it or waive it.........
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March 21 2010
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We are locked on a 5/1 ARM at 3.75% for $417k with about $1500 in non-prepaid closing costs. It looks like I can get a comparable package from another lender. If I go elsewhere, I figure I'll have to pay the BofA appraisal.
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March 21 2010
Yes
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March 21 2010
Your 60 day lock was a good idea and should have been plenty of time.  Most loans I close are less than 30 days easily although things can happen so your lock was prudent and a good choice.  Some lenders let you pay an extension fee and some lenders force you to current market pricing when a lock has expired. 

I know you are sort of tied to BofA now because you have paid for the appraisal but you may want to see what is available out there.  If you are dealing with a retail BofA branch you are already paying more than dealing with a good honest reputable mortgage broker. 

Submit a loan request on Zillow and see what kind of offers you get.  It may make sense to go with another lender.  You may even be able to use the appraisal that you already have although that is unlikely.  Who knows... if you threaten to leave they may also waive their extension fee.

Sorry for your issues and good luck getting this resolved.
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March 23 2010
 
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