Posted on: 24th Apr, 2010 02:37 am
I'm refinancing my condo. I've signed the required paperwork and have sent the documents. The appraisal has been done and the loan application is on the underwriter's desk. However, I'm not happy with my lender. Suddenly the lender has asked me for a Mortgage Insurance Premium which will cost me an additional charge of 2.5k. Also the loan would be converted into a FHA one. Earlier the lender mentioned about the PMI which was fine with me. Though I satisfy all the required criteria of the lender, my loan will now become an FHA one and the closing costs would increase suddenly.
Now, my question is that - can I go with another lender at this point though the appraisal is done and use my current paperwork? I'm getting screwed here. I want to try a new lender to check if they can offer me a loan without the Mortgage Insurance Premium.
Now, my question is that - can I go with another lender at this point though the appraisal is done and use my current paperwork? I'm getting screwed here. I want to try a new lender to check if they can offer me a loan without the Mortgage Insurance Premium.
hi pedro,
as far as i know, in case of a refinance, you'll get a 3 day right of rescission. this means that though you've taken out a loan, you can cancel it within 3 days and get out of it. if you're just in the application stage, then you will be able to walk away and get any application fee back. but in case of the appraisal fee or rate lock, you will be still responsible for it if it's still unpaid. if the appraisal fee is paid off, there are chances that you may not get the fees back. if you go for another lender, then they would require a new appraisal.
as far as i know, in case of a refinance, you'll get a 3 day right of rescission. this means that though you've taken out a loan, you can cancel it within 3 days and get out of it. if you're just in the application stage, then you will be able to walk away and get any application fee back. but in case of the appraisal fee or rate lock, you will be still responsible for it if it's still unpaid. if the appraisal fee is paid off, there are chances that you may not get the fees back. if you go for another lender, then they would require a new appraisal.
Most lenders will require that a new appraisal be completed. Supposedly under the new appraisal rules, appraisals are "supposed to be" portable from one lender to the next, but so far, I have only seen it on rare occasions. You may want to be prepared to pay for another appraisal, application fee, etc. Perhaps one of the mortgage professionals can confirm this or let me know I am full of it.
On the other hand, the mortgage insurance on an FHA loan is paid up front versus, a conventional loan which you will pay the mortgage insurance premium on a monthly basis and it gets added to your mortgage payment as part of your escrow payment.
I personally have a VA loan which is similar to an FHA in that the insurance premium was paid up front. The benefit is a lower monthly payment and probably more favorable rates as well. Something to think about.
On the other hand, the mortgage insurance on an FHA loan is paid up front versus, a conventional loan which you will pay the mortgage insurance premium on a monthly basis and it gets added to your mortgage payment as part of your escrow payment.
I personally have a VA loan which is similar to an FHA in that the insurance premium was paid up front. The benefit is a lower monthly payment and probably more favorable rates as well. Something to think about.
