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 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.
- 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.
- Can I get copies of checks from a past refinance?
It's not going to be easy, that's for sure.
- Can I refinance an underwater ‘kiddie condo’?
If the home is underwater, HARP is really your only option.
- Will shopping around for a refinance affect my credit?
Credit bureaus usually treat multiple applications to different lenders as a single entry in your credit file.