Q: My husband and I started refinancing proceedings. We’ve signed good faith estimate papers and paid for the appraisal, but now rates have gone down again. We have not closed on the loan yet. Is it too late to pull out of this process and look for a better deal?
A: Rates have really dropped in the last few days. If your lender has not yet dropped your rate, you should shop around and see if you can’t get a better deal. Then, go to your lender and tell him or her that you will not refinance the loan unless they can do better, in accordance with what’s out there. But make sure you have your numbers straight before you have that conversation. And be prepared to walk away from your appraisal fee. Next time, try to get the lender to put all of the costs into the closing, so you don’t have to pay them upfront.
January 1, 2005