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UPDATE: Is my lender telling me the truth?

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ezdriver
Senior Contributor

Re: UPDATE: Is my lender telling me the truth?


@Revelate wrote:

@Anonymous wrote:

UPDATE: Our loan is now in UW. THe lender called me today and told me that because we are at a 90% LTV, we will incure a .5% interest increase and that we could get away from that if we put an addtitional 10% down. I said, "Hold up...we NEVER talked about an additional .5% for a 90% loan. When we were loan shopping, we specifically called you because you offer a 90% Construction to Perm loan and you quoted me the 3.25% rate based on your portfolio. Then she said "I have you in here at 4.25% based on the disclosures". I reminded her of the conversation regarding the 3.25 vs 4.25 (scores are well above 720 now) and that she promised me the rate would go back down once we got the score above 720. SHe is pretending like she doesn't remember but I know she does because I have the documentation to prove it. She admitted that it was "her bad" for not telling me about the .5%. I told her I can't do "my bad" and that the reason we walked from the other lender is because they made a mistake in what they told us and said "oh that was my bad". I told her we will go with another lender if we have to based simply on a "my bad". She said she is calling her supervisor and will call me back. It feels like the old bait and switch and .5% on the size of our loan isn't chump change. 


Was this a 15 year or ARM or something?  I don't know anything about new construction loans but 3.25 sounds sweetheart.

 

Most lenders have tiering based on credit score and LTV, and it should be in their rate sheet.  I would go explicitly back to my paperwork and see what was there from when you rate locked assuming you did that at some point in the process.  If the original number is on the paperwork once you actually made the application wave it around for all it's worth.

 

If it's not, well, I would not be expecting the lender to do much though you should be able to move if you have new credit scores available but the .500 on 10% down, hard to say but they might waive it looking at Fannie's recent matrix.  Admittedly this is on the LO, and I'd go look for another lender to see if I could better deal the new offer if you feel strongly about it, but 3.25 is, well, yeah.  FWIW that's what my recent 15 year conventional fixed at 25% down, though admittedly the extra 5% didn't help much rate wise on a 15 year, at 720 mid-score, for comparison purposes.

 

 


It is a 7 year ARM 90% Jumbo Construction Perm loan with a portfolio lender.

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