Q: We started the process of refinancing three months ago. We were approved quickly however the mortgage company lost papers, has us jumping through hoops and set us up for a 30-year loan when the original application
was for 20 years.
Meanwhile the interest rate is back up to nearly what we are paying now. Is this run-around typical?
A: Sorry to hear of your troubles, which are more commonplace in today's market than you might expect. Without a lot more detail about your situation, it's hard to even speculate on the source of the troubles, but the changing availability and price of mortgage credit, new regulations, a lack of experience personnel and more can all contribute to a frustrating and unsuccessful refinance.
If you haven't committed too much money to the process, you might consider pulling the plug and contacting another mortgage lender to see if your level of service and competency improves.
- What is a home equity line of credit?
A home equity line of credit is a type of second mortgage that allows homeowners to borrow money using their home as collateral.
- What is a home equity loan?
Homeowners with equity in their property can take out a home equity loan that uses their home as collateral.
- What is a rate and term refinance?
Homeowners have a variety of reasons for refinancing and each reason can indicate that one refinance option or another makes the most sense.
- Is a home equity line of credit tax-deductible?
One of the benefits of homeownership is the availability of a tax deduction for the interest paid on a mortgage.
- Are ten-year fixed-rate mortgages (FRM) available anywhere?
Sure! Virtually all lenders who sell product to Fannie Mae or Freddie Mac will be able to offer you mortgage with a 10-year term. However, interest rates are usually the same as the lender's 15-year offerings.