I applied for a mortgage to refinance my home over 2 months ago. I was
able to lock in at a rate of 3.99% on a 5-1 ARM. Since then the rates
have jumped to 5.375% for the same 5-1 ARM. For over a month I have
been told that my mortgage is in the scheduling department and they
are never able to give me a closing date or a reason for the delay. I
was originally granted a 45 day rate lock, got an extension for
another two weeks, then got another extension for another two weeks.
I am no 5 days from the expiration of my rate lock and they are not
extending it any further.

I'm guessing that they do not want to fulfill mortgages at such a low
rate and are intentionally delaying closing so the current rates will
be used. I can't imagine that this is legal. Is there any legal
precedence for this? What's stopping a lender from offering .5%
financing and delaying closing until the rate expires and charging 6%?


Any help would be appreciated,
Eric Austin

That's a ridiculous delay (and I do think, illegal). I mortgaged a house
purchase with a 5-1 ARM and the mortgage company had only 26 days from start
until close and had no problem with it--and I'm a first time buyer! I
think you need to start talking "lawsuit" and see if you get any more speed
out of them...
Kirsten
"Eric" wrote in message
om...
I applied for a mortgage to refinance my home over 2 months ago. I was
able to lock in at a rate of 3.99% on a 5-1 ARM. Since then the rates
have jumped to 5.375% for the same 5-1 ARM. For over a month I have
been told that my mortgage is in the scheduling department and they
are never able to give me a closing date or a reason for the delay. I
was originally granted a 45 day rate lock, got an extension for
another two weeks, then got another extension for another two weeks.
I am no 5 days from the expiration of my rate lock and they are not
extending it any further.

I'm guessing that they do not want to fulfill mortgages at such a low
rate and are intentionally delaying closing so the current rates will
be used. I can't imagine that this is legal. Is there any legal
precedence for this? What's stopping a lender from offering .5%
financing and delaying closing until the rate expires and charging 6%?


Any help would be appreciated,
Eric Austin