Higher Interst for Mortgage loan by Lender

[ken_rgr]

What is the name of your state (only U.S. law)? VA

I am a first time home buyer.
In February I signed a contract to purchase a brand new home.
and my closing date is Jun19th(Wednesday).
I have a very good credit history( fico score 792) and I am I am ready to put
20% down payment. In April one Bank offered me 3.375% Rate of interest.
And I couldn't lock it at that time and in May interest rates went high and high.
I regret myself a lot for not locking the rate with the Bank.
So last week of May I contacted another mortgage lender as I heard that they are
offering one time free float lock down. So on May 29th I went to their office
located in VA. Fist the lady offered me 3.85% for $417K and for the remaining
$50K offered me 3.75%(My loan amount is $467k after 20% down.). After 10 mins she spoke
to another person and said, sorry I gave you wrong quote the rates have gone up and
your rate will be 4.125% with one time free float lock down. Her subordinate showed
me some images of the market(I really don't know what are they) as my closing date
is nearing, I have no option except but to accept that offer. I had a feeling that
they are trying to sell my loan at a higher rate. I feel very bad about the situation and
I am not sure what to do now. This higher rate will cost me a lot in future .
I dont know what to do.

 

[FlyingRon]

Do you have a question?

Until you start get down to the TILA paperwork, the rates can be changed at any time.

 

[sandyclaus]

What is the name of your state (only U.S. law)? VA

I am a first time home buyer.
In February I signed a contract to purchase a brand new home.
and my closing date is Jun19th(Wednesday).
I have a very good credit history( fico score 792) and I am I am ready to put
20% down payment. In April one Bank offered me 3.375% Rate of interest.
And I couldn't lock it at that time and in May interest rates went high and high.
I regret myself a lot for not locking the rate with the Bank.
So last week of May I contacted another mortgage lender as I heard that they are
offering one time free float lock down. So on May 29th I went to their office
located in VA. Fist the lady offered me 3.85% for $417K and for the remaining
$50K offered me 3.75%(My loan amount is $467k after 20% down.). After 10 mins she spoke
to another person and said, sorry I gave you wrong quote the rates have gone up and
your rate will be 4.125% with one time free float lock down. Her subordinate showed
me some images of the market(I really don't know what are they) as my closing date
is nearing, I have no option except but to accept that offer. I had a feeling that
they are trying to sell my loan at a higher rate. I feel very bad about the situation and
I am not sure what to do now. This higher rate will cost me a lot in future .
I dont know what to do.

Unless and until you actually sign a contract which specifies an interest rate, that rate can (and probably will) change. Several factors could affect that rate, including current interest rates, changes in the market, or even changes in the lending institution's practices and policies.

They aren't obligated to honor a specific rate until it's in writing, and you aren't obligated to accept offers only from that lender. If you don't like the rate they're offering, or you feel like they aren't being fair, then you are free to apply with other lenders to try to get a better rate.

 

[swalsh411]

What is the name of your state (only U.S. law)as my closing date
is nearing, I have no option except but to accept that offer.

So what you're saying is that you dragged your feet and didn't leave enough time before closing to shop around to get the best deal? And this is somebody else's fault?

 

[ken_rgr]

The reason I trusted them because they said after june10th market will come down.
And even till June10th many of other lenders are offering lesser rate.

 

[Zigner]

The reason I trusted them because they said after june10th market will come down.
And even till June10th many of other lenders are offering lesser rate.

You speculated and lost.

 

[Antigone*]

What is the name of your state (only U.S. law)? VA

I am a first time home buyer.
In February I signed a contract to purchase a brand new home.
and my closing date is Jun19th(Wednesday).
I have a very good credit history( fico score 792) and I am I am ready to put
20% down payment. In April one Bank offered me 3.375% Rate of interest.
And I couldn't lock it at that time and in May interest rates went high and high.
I regret myself a lot for not locking the rate with the Bank.
So last week of May I contacted another mortgage lender as I heard that they are
offering one time free float lock down. So on May 29th I went to their office
located in VA. Fist the lady offered me 3.85% for $417K and for the remaining
$50K offered me 3.75%(My loan amount is $467k after 20% down.). After 10 mins she spoke
to another person and said, sorry I gave you wrong quote the rates have gone up and
your rate will be 4.125% with one time free float lock down. Her subordinate showed
me some images of the market(I really don't know what are they) as my closing date
is nearing, I have no option except but to accept that offer. I had a feeling that
they are trying to sell my loan at a higher rate. I feel very bad about the situation and
I am not sure what to do now. This higher rate will cost me a lot in future .
I dont know what to do.

You chose not to hedge your bet by not locking the rate. You're on the short side of the deal and there is nothing illegal about it. Either pay the market rate or don't. It is your choice.

 

[swalsh411]

The reason I trusted them because they said after june10th market will come down.
And even till June10th many of other lenders are offering lesser rate.

No lender knows for sure where rates will go. You took a chance and it backfired. Live and learn. It's also possible they lied to you, knowing rates would go up, but hoping you would delay so you would have no choice but to pay a higher rate with them. But there's no way to prove that.

 

[MedusasRevenge]

The reason I trusted them because they said after june10th market will come down.
And even till June10th many of other lenders are offering lesser rate.

They must have been using the FA Crystal Ball. And all this time I thought SJ had it.