I am in the process of a refinance on my mortgage. I should be closing in approx 2 weeks or less. As you may know, on home equity and/or refinance loans you have the option to rescind within 3 days of closing.
If within these 3 days I could “lock-in” on an even lower rate then my current refi, could I legally and morally rescind the refi for a new refi without causing any hardship (financial or otherwise) on my mortgage broker? I would like to continue doing business with him. Is this practice frowned upon in the mortgage industry?
If you’re happy with your mortgage guy, don’t jerk him around just to chase after a slightly lower interest rate. By the time closing is finished, he and his assistants and the title company have put in several hours getting the paperwork together. At one point you were satisfied with the interest rate and agreed to it and decided to run with it.
Also, you may have already paid for an appraisal, which your mortgage guy will not want to refund to you.
(By the way, I once did back out of a mortgage withing the 3-day period because of the huge number of mistakes that were made on the closing documents.)