Refinancing, bank being deceptive?
I'm trying to refinance my home right now and feel like something is not right but not sure if I'm just being paranoid and unreasonable.
My current mortgage holder (Chase) called and said that I qualify for the government HARP program that assists homeowners who have a LTV of 80% or greater to refinance to a lower rate.
Let me stress, that I have no problem paying my mortgage and have never made a late payment. This was completely solicited by the loan officer.
Here is the pitch:
- simple deal, I don't have to provide any paperwork
- reduce interest rate to 4.125% (from 6.5%) & a payment that's $600 per month less
- skip a mortgage payment in the closing month
- Pay $395 application fee upfront and NO MONEY AT CLOSING. Closing costs rolled into the loan
So it all goes pretty smoothly, they did need a copy of the survey and that's it. Also, the LTV came in right at 80%. Within a month I get a call from the processor to set up closing, which we can do at home with a notary on Saturday afternoon. The processor says that we might have to bring "a couple hundred dollars to the table but they were working on getting that down to zero." I said, uh okay. Get off the phone, tell DH and he wants to talk to the processor. I call back and leave a message to that affect and never receive a return call.
Saturday rolls around, the notary says she's running late because they just sent the paper work over moments before. She shows up and the paperwork has us handing over a check for over $1000 (of which we do not have readily available). Notary kindly calls the bank and puts a lady on the speaker who says, "I'm very sorry, there was obviously a mistake but we'll have to wait for Monday to figure it out."
Monday rolls around and no calls from anyone. This afternoon I called the local loan officer who originally solicited me and he's acting like we're the ones with the problem and we should have expected that we were going to have to have some money at the table. I told him that I'm feeling like something not quite right is going on and perhaps I should go to another bank. He politely tells me that's my prerogative but he would make some phone calls.
DH is totally livid and I'm just confused. I mean, in the end it will benefit us greatly but their actions (deceptiveness?) just doesn't feel right.
What should be our next step? Or just close and be happy about it?