Refinance Mortgage

Question: Can i cancel my refinance mortgage application if the apprasial hasn't even been done yet? ?

(Posted by: Tim on 2008-12-04 17:07:51)

I applied to refinance my house and locked in the rate. An appraisal hasn't been done yet but the rate has dropped 0.5 % so do you think i can cancel my application and go with another lender? Will that hurt my credit ? Thanks

Posted by: iNetMANN on 2008-12-04, 19:08:05

Yes and no... Let me explain... You are locked for a given amount of time, usually 30-60 days and the lock only applies to that lender. So actually you wouldn't cancel it, you would wait for it to expire. But their are options, contact your agent and he/ she may be able to find another lender to transfer your application to that is offering a lower rate. Sometimes the locked lender will consider your request and relock at a lower rate, all you have to do is ask, if they say "No " have your broker (if you are using one) shop around for a new lender at a lower rate. If your not using a broker, go shopping for a new lender! I'm doing the same thing, locked last week and am now having my broker shop for a new rate, this is not unusual!

Posted by: sasyone on 2008-12-04, 17:14:02

No you can back out anytime you want as long as you haven't signed the paperwork for the new mortgage.Call them and let them know you are looking at your options and the lower interest rate,they will probably work with you im sure.

Posted by: Bridge L on 2008-12-04, 17:14:04

No. Cancel it. It won't hurt your credit. The worst thing that will happen is if your credit gets pulled again with another lender you may lose 1pt in fico score but big deal it will come back up if you keep making your payments on time. You want to get the best deal possible. If you pay 0.5 or 1% higher in rate it adds up to a lot of money over time. I would recommend going to a site where you can apply to several lenders and have them jockey for your loan. Try golendershopping.com

Posted by: Expert Realtor on 2008-12-04, 19:21:12

The rate dropped another .5% according to who? Before you drop one lender, get it from the other lender, locked and sealed IN WRITING. Let me guess, you mentioned to another loan officer that you got such and such rate from XYZ lender, and the LO claims he can beat it, right? Oldest sales tactic in the book...any LO can beat any LO's rate...but the question is...what is your closing costs going to look like.