VA Refinance Problem

3 Replies

I am going through a cash out refi on my home. My rate lock expired a couple days before the appraisal came back. No  In that time the loan officer I was working has been replaced. Interest rates have also come down. The lender wants to charge me almost $1200 to extend the rate lock or they can offer a slight increase for no cost. I was locked in at 3.375, they are pitching me 3.5 without a fee, but now offer 3.25 with the recent rate drop. I'm out the $800 for the appraisal but my question to them is why wouldn't I just reapply all together with the lower rate available and appraisal in hand? 

@Benjamin Tighe

I highly doubt the company is going to allow you to reapply as they will already have your info in the system.

You may need to find another lender to get today’s lower rate.

In my experience lenders will compete for your business if and only IF you get another lender involved. Call around, maybe try a local credit union and get a rate quote in writing (e-mail) then send it over to the refinance company you're working with and say something like:

It's not my fault that the loan officer you were working with was replaced and I feel like I'm being taken advantage of. Can you waive the $1200 extension fee or move me over to the now lower rate since you took so long?
If not then I already reached out to xxx credit union and they're offering me __% rate. I'd prefer to keep working with you since we've gone this far but if you're unable to make this right by us then I'll have to explore other options to get the refinancing done. 

As long as your demands are reasonable you're not bluffing they'll do what they can to keep you. At the end of the day the loan officer only gets paid if the deal closes. You'll be surprise how quickly the conversation goes from  "there is nothing I can do" to "let me go and talk to my manager and see what THEY can do". 

Best of luck!

The credit union is waiving the fee and giving me .5% credit on closing costs, as well as the original 3.375% rate.

I was direct but polite and expressed a desire to build a relationship with the credit union and they appear to want to work with me. Thanks to everyone who took the time to read and share your knowledge.