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Answers (5)
- Frank Sandoval, "Mortgage Finance Pro"
- Contributions:86
I agree with what Michael wrote: "If we cause a problem that forces an extension then I eat the fee. I think any professional lender would do the same."
On the other hand, if your current lender does not budge on covering this fee then your only other option may be to not move forward with this refinance and start a refi elsewhere with a new lock. Given the recent rate increases my guess is that you would be worse off from a cost point of view if you started elsewhere so paying the lock extension fee may actually be your best financial option.
Best of luck.
On the other hand, if your current lender does not budge on covering this fee then your only other option may be to not move forward with this refinance and start a refi elsewhere with a new lock. Given the recent rate increases my guess is that you would be worse off from a cost point of view if you started elsewhere so paying the lock extension fee may actually be your best financial option.
Best of luck.
- Michael Mullin, "WA and CA FHA Expert"
- Contributions:369
dgoldy1 - if your lender has a manager I'd ask to speak with them. Feel free to even show them your post to Zillow asking for help. The way in which you wrote the post indicates you are a reasonable person.
Hopefully their will be a manager that can get involved who cares about their reputation and will do the right thing for you.
If we cause a problem that forces an extension then I eat the fee. I think any professional lender would do the same.
I'll bet the issue here is that your lender has already extended the lock once. Depending upon what bank they locked your loan with they may be having trouble getting a second extension - particularly with the big jump in rates last week. Extensions actually create a cost for the bank, that's why they are so sensitive to them.
@Chris - I don't believe the GFE rules prevent the lender from charging the borrower a lock extension fee as long as such fee actually exists. If done correctly, the GFE would have had an expiration date that corresponded to the lock expiration date. Once the lock expired the lender most certainly would have the ability to add an extension fee to the borrower.
Hopefully their will be a manager that can get involved who cares about their reputation and will do the right thing for you.
If we cause a problem that forces an extension then I eat the fee. I think any professional lender would do the same.
I'll bet the issue here is that your lender has already extended the lock once. Depending upon what bank they locked your loan with they may be having trouble getting a second extension - particularly with the big jump in rates last week. Extensions actually create a cost for the bank, that's why they are so sensitive to them.
@Chris - I don't believe the GFE rules prevent the lender from charging the borrower a lock extension fee as long as such fee actually exists. If done correctly, the GFE would have had an expiration date that corresponded to the lock expiration date. Once the lock expired the lender most certainly would have the ability to add an extension fee to the borrower.
- shapiroamg
- Contributions:3058
3 days to turn around a subordination request is great. I typically lock clients for 30 days, but will go to 45 days if a subordination is involved. LO should have known that from the begining. I think you have an arguement if you insist that they extend for no cost. Be firm but nice.
- Jeff Harris, "JumboSpecialist"
- Contributions:32
Many lenders will quote you an aggressive 30 day lock and claim they can get it done. They do this to get you in the door. However, closing a refinance with a subordination and a 3 day right of rescission period inside 30 days is almost impossible. You would need at least 45-60 days to complete that transaction. That said, you should not have to pay an extension fee, since you were misled from the onset.
- Chris Milker, "CMG Financial"
- Contributions:255
Did the lender provide a Good Faith Estimate to you? Those are the fees that they are allowed to charge in conjunction with your refinance. The numbers in box 1 of the Good Faith Estimate can not change. Those figures are the cost associated with the interest rate that you were quoted.
Refi and lock extension fees
I am in the process of refinancing my mortgage and having my existing HELOC subordinated as part of the process. The bank holding the HELOC needs 3 business days to subordinate, so it is pretty painless (and in my mind, quick compared to what I have read).
The issue I have run into is that the lender doing the refi of the 1st mortgage is taking a long time. – much longer than the 30 days they told me initially. To make matters worse, they forgot to reach out to my other lender to request subordination of the HELOC (they admitted this was their mistake). I initially had a lock for 30 days, which has been extended for free for another two weeks because of the lender being slow. The lender is now saying that since we need to wait for the subordination (which they just requested), my closing will be pushed for another week or two and they may not be able to extend the lock for free any longer.
Am I wrong to not accept having to pay any fees to extend the lock further since they screwed up?
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