Mortgage refi question

[fryjack2]

So, we started a refi a couple months ago.  I reached out to 2 banks and our broker.  Our broker said he could meet my bank's rate but couldn't get closing costs waived.  My bank was offering a reduced closing cost amount. 

Broker emailed us a rough quote of X for closing costs.  I was about to sign the final documents today and they are roughly 3x what he estimated.  I compared the breakdown to what my bank was waiving ( $2500 plus a 1k credit).  I asked him if he could at least bring our total down a bit closer to the bank as his estimate was waaaay off and I can't figure out why.  His original email had the same information as the loan numbers when gave an estimate for closing costs. 

Can I not sign the documents at this point and see if my bank will honor what they originally offered me?

PDQ- if it matters, its a 7 figure jumbo loan. 30 year fixed. We bought last summer so have only been in the house a year.  Plan to stay 15-20 years. 

[madisen]

From what you’ve written here, you can still back out at this point. Lenders are obligated to honor what’s called a three day right of rescission period on refinances of owner occupied loans if they weren’t the lender of the original loan.

This means you have three days to change your mind even after signing closing docs. You would be out what you paid for the appraisal but anything collected by the lender/title company would be refunded.

However, there are some things i’m questioning about your scenario. You should have gotten a Loan Estimate within three days of your loan application and lenders are not allowed to raise fees/pricing without what’s called a Change of Circumstance, sending it to you within three days of the change, and having you sign that. How did your Closing Docs change so much?

Also, when was the estimate from the other bank? If it wasn’t recent you’ll want to get a new estimate as rates have changed.

ETA: I’ve been in the mortgage industry for over twenty years but here’s a link so you don’t have to take a virtual stranger’s word for it: www.investopedia.com/terms/r/right_of_rescission.asp

[RockNVoll]

Ugh, sorry to hear. I don't have any additional advice to offer, just sympathy. We're supposed to close our refi in the next few days. We went into it with the expectation of close to zero closing costs, then the official GFE was way higher, but the final number did come back down to a few hundred dollars. It was a bit of a roller coaster and I'll breathe easier one this is done.

I wonder if you can get an even better rate now. Might take some of the sting out of having to start over.

[fryjack2]

I emailed asking our broker for an explanation. He looked and found the numbers are wrong. They are charging us twice for something, and charging us something else that we pay on our own so shouldn't be in the loan docs. some of the numbers are part of the escrow, etc that is fine and we are ok with as it essentially skips the October mortgage payment (paid as part of closing). He is going to give us a further $500 credit to help offset the cost bringing it down to a much closer number to the original estimate.

madisen , thank you!! I'll go back and look through emails to see what the loan estimate stated. Update- I looked at the loan estimate.  The closing costs listed are pretty much the higher number we saw on the final document.  Ylkes.  I should have questioned them earlier, but glad I clarified them and got them fixed/reduced.