bank changing apr

[CivilRightsRebel]

What is the name of your state? Michigan

Last year around Feb / March we signed papers for a construction loan. We have 5 acres (which is paid for). At the time of the closing we explicitly asked the bank manager if our rate would change when the construction loan is switched to a mortgage. She said no, it would simply roll over, then she went on to say that our rate was "locked in".

Now we're nearing completion of the construction and the subject came up again. Now she's saying our mortgage rate is going to be a "to date" apr. Which happens to be .6% higher now.

When we sealed the deal for the construction loan we were told we paid TWO closings at once. One for the construction loan the other for the mortage. If that's the case, since money was exchanged, shouldn't they be bound to the agreement regarding apr?

Thanks.

 

[HomeGuru]

What is the name of your state? Michigan

Last year around Feb / March we signed papers for a construction loan. We have 5 acres (which is paid for). At the time of the closing we explicitly asked the bank manager if our rate would change when the construction loan is switched to a mortgage. She said no, it would simply roll over, then she went on to say that our rate was "locked in".

Now we're nearing completion of the construction and the subject came up again. Now she's saying our mortgage rate is going to be a "to date" apr. Which happens to be .6% higher now.

When we sealed the deal for the construction loan we were told we paid TWO closings at once. One for the construction loan the other for the mortage. If that's the case, since money was exchanged, shouldn't they be bound to the agreement regarding apr?

Thanks.

**A: No, so go back and read your loan docs.