Posted on: 09th Oct, 2010 10:26 pm
i'm in the process of refinancing my primary residence. i've locked a rate but the rates have fallen since.
although i'm working through a local bank, the investor (source of the funds) just so happens to be the same bank that lent me the funds to buy the house (original mortgage). i see that the right of rescission does not apply when "a refinance transaction [is] with the existing lender".
question: is the "existing lender" the source of the funds or the bank / broker you worked through to obtain the existing mortgage? in other words,
can i rescind this refinance?
thanks.
although i'm working through a local bank, the investor (source of the funds) just so happens to be the same bank that lent me the funds to buy the house (original mortgage). i see that the right of rescission does not apply when "a refinance transaction [is] with the existing lender".
question: is the "existing lender" the source of the funds or the bank / broker you worked through to obtain the existing mortgage? in other words,
can i rescind this refinance?
thanks.
Hi Mkubwa,
Surely you can abandon the contract if you haven't signed the documents yet but if you have signed the contract then you are locked and need to accept those locked interest rates only ....
But what I can assume that most of the banks will make sure that you sign the documents and trying to get you in the contract first.So I think you have very less chances to rescind this refinance.
Feel free to ask ay further query if you have.
DIPA
Surely you can abandon the contract if you haven't signed the documents yet but if you have signed the contract then you are locked and need to accept those locked interest rates only ....
But what I can assume that most of the banks will make sure that you sign the documents and trying to get you in the contract first.So I think you have very less chances to rescind this refinance.
Feel free to ask ay further query if you have.
DIPA
Thanks for the advice. I'll monitor the rates and if I can get .25% lower than what I've already locked I'll bail prior to signing.
Question: since it sounds like I will be ineligible to rescind this loan when do you recommend bailing so as to minimize costs to me. Currently, only a credit report and appraisal has been completed. When will the bank claim they've expended their own money and I must reimburse them? Methinks I should bail sooner rather than later.
Question: since it sounds like I will be ineligible to rescind this loan when do you recommend bailing so as to minimize costs to me. Currently, only a credit report and appraisal has been completed. When will the bank claim they've expended their own money and I must reimburse them? Methinks I should bail sooner rather than later.
Hi Mkubwa,
You've mentioned in your earlier post that your original lender is the investor for the refinanced home. In that case, it won't be considered as "a refinance transaction with the existing lender". In that case, you can apply for rescission of the contract if 3 days have not passed off yet.
Thanks
You've mentioned in your earlier post that your original lender is the investor for the refinanced home. In that case, it won't be considered as "a refinance transaction with the existing lender". In that case, you can apply for rescission of the contract if 3 days have not passed off yet.
Thanks
jameshogg: I don't understand.
The original investor (current) - for my home is the same bank that will be investing in the refinanced mortgage once the transaction is complete. Would this investor (bank) not be the "same creditor" (see below). I believe the Truth in Lending Act stipulates I am exempt from rescinding this refinance in paragraph (2) below. What am I not understanding?
(f) Exempt transactions. The right to rescind does not apply to the following:
(1) A residential mortgage transaction.
(2) A refinancing or consolidation by the same creditor of an extension of credit already secured by the consumer's principal dwelling. The right of rescission shall apply, however, to the extent the new amount financed exceeds the unpaid principal balance, any earned unpaid finance charge on the existing debt, and amounts attributed solely to the costs of the refinancing or consolidation.
I need to pull out of this transaction ASAP if I will be unable to rescind. So, can I or can't I rescind given all the information?
Thanks again.
The original investor (current) - for my home is the same bank that will be investing in the refinanced mortgage once the transaction is complete. Would this investor (bank) not be the "same creditor" (see below). I believe the Truth in Lending Act stipulates I am exempt from rescinding this refinance in paragraph (2) below. What am I not understanding?
(f) Exempt transactions. The right to rescind does not apply to the following:
(1) A residential mortgage transaction.
(2) A refinancing or consolidation by the same creditor of an extension of credit already secured by the consumer's principal dwelling. The right of rescission shall apply, however, to the extent the new amount financed exceeds the unpaid principal balance, any earned unpaid finance charge on the existing debt, and amounts attributed solely to the costs of the refinancing or consolidation.
I need to pull out of this transaction ASAP if I will be unable to rescind. So, can I or can't I rescind given all the information?
Thanks again.