Posted on: 07th Jul, 2009 08:34 pm
help! HSBC's mortgage insurance company promised to finance 90% of our loan and has decided at the last minute that they can only finance 85%! They told us to get an FHA loan, but that will put us at 5.5% when we have a locked rate of 4.65 with them. Firstly, can they reneg at the last inute--is that legal or ethical? Any suggestions on how we could fight them on this?
Hi nickb,
Did HSBC give you any reason as to why they are renegotiating the terms of the loan at the last minute? If the rate is locked at 4.65%, then the lender cannot suddenly increase it to 5.5%. However, if the rate lock has expired, then the lender can charge a higher interest rate. You should ask your lender to clarify the whole issue for you.
Did HSBC give you any reason as to why they are renegotiating the terms of the loan at the last minute? If the rate is locked at 4.65%, then the lender cannot suddenly increase it to 5.5%. However, if the rate lock has expired, then the lender can charge a higher interest rate. You should ask your lender to clarify the whole issue for you.