Anonymous

Mortgage Fees

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I started the process of refinancing my Jumbo mortgage with my local bank, but they told me I had to do a 300K conventional and a 25K 7-year balloon.

After receiving all the paperwork (after they started the title search and had the appraisal done) I decided I don't like banking my financial future on quicksand - that is, I want to walk away from the deal, espcially the balloon loan which I didn't fully understand when it was pitched to me on the phone.

They have no signed paperwork from me, but have collected an application fee ($300) and .5 point refundable at closing via credit-card charge.

My question is, by walking away from the deal now, what fees am I responsible for paying besides the application fee (if any at all?)

Thanks.

Bill K.

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Man, you have been hosed. :mad: Don't ever, ever, ever do that again. If you are applying for a home loan, and they want upfront fees for anything but the credit report and the appraisal, run very fast in the opposite direction.

If you have not signed anything, then you shouldn't be liable for any other charges. I am not even sure that you are liable for that half point they charged you. What was that for?

I would be interested to know why they wanted to structure your loan that way. You will get a better rate on the 1st TD, but the 2nd TD is usually a 30/15, which means that the payments are amortized as if you were paying it over 30 years, but there is a balloon payment due in fifteen years. Usually, way before the balloon is due, the conforming loan limits will go high enough to cover the 1st and 2nd, so you can refi into one loan, and/or the property will appreciate enough to do the same.

On the other hand, you need to be able to sleep at night, so if you are really uncomfortable with the idea of a 2nd TD, how come they don't just put you into a jumbo loan?

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