Doing a refi with LTV of 67%. Lender says it's 70% and wants to increase my rate?

[DallasLoanGuy]

Thanks Shane.

I don't get their sheets anymore

[ShanetheMortgageMan]

Me neither, I had to steal a buddy's login

[Pabs]

Thanks guys.  So if he didn't lock the rate, and now it is worse, do I have any recourse?  I did sign a request form to lock the interest rate with the mortgage lender for 4.875%.  I am tempted to call the lender directly.  Is that appropriate to bypass the broker?  Thanks again.

[DallasLoanGuy]

i don' think they will talk to you

he should be able to honor the rate. he wouldn't make much, but it would be the right thing to do.

[ShanetheMortgageMan]

Just had a lot of lenders reprice their interest rates for the better after they were intially worse this morning, including Provident pricing for the better.  If your LO still didn't lock perhaps he can save himself the hit on the price.

Hypothetically though, let's say as soon as you go from 69.99% to 70.00% LTV there was a price adjustment to the rate... solution?  Drop the loan amount by $100 and now you are at 69.99% avoiding the price adjustment.  There are some lenders who have adjustments starting at 80.00% instead of 80.01%, etc., basically giving you a higher rate because they are blurring the lines... but if they are going to be sneaky, be sneaky right back and just cough up the extra $100 at closing or deduct it from the cash out proceeds.  If they are charging you that much in closing costs for that LTV adjustment it'll more than pay for itself.

[Pabs]

Would you believe, it has been since February 9th since the appraiser provided their respone the Provident's appraisal department and we have not heard one thing.  This is complete bait and switch?  What the hell should we do - after paying the appraisal fee, securing the best rate out there we are stuck!  Any advice?  I am using a broker, but who can I call to get this moving to close...

[Anonymous]

May be I'm in the same boat with you. Tentative Closing was over 2/15. Rate lock will expire 3/2 may be over too. Just talked to my LO, he said if that the case, he will extend the lock rate without charging any fee OR relock the rate if it falls. LO told me they are extreamly busy. I was lock at the rate 4.75% 30yrs fixed with only in $2300 for loan fees and third party fees. Loan amount 625k.

The reason for delay because my credit score change, it goes up 806 and I was asking for a lower rate. LO agreed but need an authorize from his manager. I hope what he told me are true. Can not wait for this loan to close.

Message Edited by MoonLight on 02-18-2009 01:39 PM

[Pabs]

Moonlight, I wish you luck my friend.  Well, my broker is eating the half point to give me the original 4.875% and I close next week.  What a process, it has been over 2 months since we started this refinance process and I am glad I wont have to do this again anytime soon. 

Thanks to everyone for your contributions.