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Valued Contributor
Posts: 557
Registered: ‎06-15-2010

Mortgage question

Can I cancel a loan application once it is signed and has gone to underwriting?

Respected Contributor
Posts: 2,608
Registered: ‎05-09-2010

Re: Mortgage question

Yes you can.  Of course if you paid for a credit report and appraisal, you won't get that money back.

Always remember that you are absolutely unique. Just like everyone else. Margaret Mead
Honored Contributor
Posts: 9,311
Registered: ‎10-25-2010

Re: Mortgage question

Yes, I have done it recently.  There was no problem.

Valued Contributor
Posts: 557
Registered: ‎06-15-2010

Re: Mortgage question

I am having to pay closing costs and all fees and my interest rate will be 4.75.

i think I should reconsider.

Honored Contributor
Posts: 25,929
Registered: ‎03-09-2010

Re: Mortgage question

[ Edited ]

@EvOm  Of course interest rates depend on a lot of variables but we were getting 3.25% + they were paying $10,000 of the closing costs  on the house we just cancelled. You should shop around and see if you can do better.

Esteemed Contributor
Posts: 6,120
Registered: ‎10-21-2010

Re: Mortgage question


@EvOm wrote:

I am having to pay closing costs and all fees and my interest rate will be 4.75.

i think I should reconsider.


We got 4.25. That was back in August when we locked in for our new build. They have gone up a lot since then. They are going to keep going up. So don’t expect them to go down. 

Honored Contributor
Posts: 9,311
Registered: ‎10-25-2010

Re: Mortgage question


@EvOm wrote:

I am having to pay closing costs and all fees and my interest rate will be 4.75.

i think I should reconsider.


Closing fees and costs are all normal expenses and will always be part of buying a home.  Interest rates just went up to 4.75 for  30 years. 

 

If you have signed a contract to buy property, you may have to pay a penalty to get out of the deal to purchase.   If there is a max interest rate listed on your contract and it is under 4.75 interest, you may be able to get out for no penalty.

 

You just can’t get cold feet and back out of a purchase agreement.  A contract is legal and binding.

 

The interest rate on my first home was 11.75%, So 4.75%is very low in comparison.  If rates drop, you can refinance usually with no additional fees.

Honored Contributor
Posts: 25,929
Registered: ‎03-09-2010

Re: Mortgage question

[ Edited ]

@CARMIE She didn't say she was backing out of the entire deal - she just wants to shop around for a better mortgage.

Anbd when a person refinances a mortgage to get a lower rate there are fees and closing costs. However, they usually put them into the loan , but you still have them.

Super Contributor
Posts: 405
Registered: ‎01-05-2017

Re: Mortgage question


@EvOm wrote:

I am having to pay closing costs and all fees and my interest rate will be 4.75.

i think I should reconsider.


I am getting quotes on a refinance and rates have gone up.  They are quoting me 5%+ so I would call around and be sure you can beat that rate before you let this loan go.  Everyone has to pay closing costs unless your purchase contract specifies that the other party is paying your costs.  If you were not able to negotiate with the seller to pay some of your costs and cash is an issue, sometimes the lender can raise your interest rate and pay some of your costs. Hope that helps.Smiley Happy

Honored Contributor
Posts: 9,311
Registered: ‎10-25-2010

Re: Mortgage question

[ Edited ]

@151949 wrote:

@CARMIE She didn't say she was backing out of the entire deal - she just wants to shop around for a better mortgage.

Anbd when a person refinances a mortgage to get a lower rate there are fees and closing costs. However, they usually put them into the loan , but you still have them.


You only have a few days to apply for and get a mortgage approved, so time is of the essence.  Right now mortgage rates are up, and I don’t see them coming down.  My credit union is offering 4.5% for 30 years and that is only .25% lower than the banks and mortgage companies are offering.  

 

i remortgaged my house three times overthe years to get a lower rate and it never cost me even a penny to do so.  Nothing was added into the loan. It was no cost or I would not have done so.