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Review 9/8/2009
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I applied for a $285,000 refinance on my primary residence and received a good faith estimate. It stated an interest only loan rate of 4.125 %. Several times over the next few weeks the loan officer would contact me asking for more documentation, than a few days later they wanted more info. This went on and on until finally on Sept. 4th I got a call from the loan officers boss congratulating me on being ready to close. Oh' buy the way the interest rate has moved up a bit to just under 5 %. I told him that I would have never gone through his dog and pony show in the first place for a loan at that rate because it simply didn't pencil for me not to mention the over $4,000 closing costs. He than out of the kindness of his heart offered to pay $1,500 of my closing costs to get er done. I told him that that wouldn't come close to the amount of increased monthly payments and money lost over the expected years of the loan so no thanks. It is also disturbing to note that the yield spread on the loan allowed them to make up to an additional 3% on the loan.
Buyer beware! Ever heard of bate and switch?
You are dealing with a highly unregulated business filled with sharks.
Bill Ewing
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