Small Business Newsletter
Sign up for our free email newsletter
Question
Interest Rate and APR discrepancy on a new home purchase?
My fiance just bought our first home for us and the closing was yesterday. He was not given any documents to look over prior to and we didn't really have a chance to look them over well during the closing. After we got home, I found the disclosure papers with the Good Faith Estimate and the initial Truth in Lending form. The interest rate on the initial TIL was 6.5% and the APR was 6.751%, and the one he signed yesterday was 7.25% and the APR is 8.145%!! We didn't notice the difference until we got home and feel like we've been taken advantage of. I know he already signed the papers and it's a done deal, but is there anything we can do now? When he signed the disclosures, we were told it was "locking in the rate" of 6.5%. Apparently, it wasn't. Also, we gave an earnest money deposit for $1,000 to the agent when making the offer on the home, but yet, it doesn't appear on the settlement statement. Is it just our paranoia or did we get royally screwed? We didn't have an attorney only our real estate agent. And we signed the initial disclosures on June 2nd that supposedly locked our rate. We closed on June 30th.
4 months ago - 2 answers
Best Answer
Chosen by Asker
When you locked your rate do you know how long the rate was good for? Most of our rate locks at our company expire in 30 or 60 days. However, your loan officer should have told you about the increase prior to closing!! Nothing you can do without the mortgage companies cooperation but I would call the loan officers manager today & throw a fit! Also, did the title company or attorney who closed the loan not tell you the rate?? That is very odd- they should have gone over rate, term, payments, due dates, late charges etc. while you were closing. As for the earnest money-has the check cleared? Your agent may have just held it to void after closing if not. If it did, it should show as a credit on your hud-settlement statement. Call the agent NOW. So sorry for all your problems, it is loan officers like yours that give the whole mortgage business a bad name.
Source(s)
22 years mortgage business.
by Beverly S
4 months ago
Asker's Rating: 
Other Answers
You definitely have legitimate questions. If you used a lawyer for the purchase give him a call. Otherwise call the mortgage company and get some ans. Mistakes do happen and might be correctable. Our lawyer screwed up and forgot to forward the mortgage commitment papers and rate went up. We complaint to the Attorney General and guess who ended up paying the extra monies? The lawyer. He then found us a better rate and had to pay the new closing costs himself.
by tkahrs12122- 4 months ago