Home Refinance Drama…

At the risk of boring you with my personal issues, I thought I’d ramble on a bit about what’s going on with refinancing our mortgage. I had planned on writing about something eco friendly however I’ve been dealing with the refinance for over a month. I locked in to a 4.75% rate with 0 points on December 17th 2008. I was approved and went through the appraisal process at which point I found out our house was valued $30k less than when we purchased it 2 years ago. I decided to go ahead with the refinance anyway since we plan to stay here for many years and I feel that 10 – 15 years from now it won’t really matter what our house was appraised for during this refinance. With all the paperwork in to the mortgage company, all I was waiting for was a date for the refinance. As the lock date was looming, I got a few extra last minute requests from the mortgage company which I gladly complied with (ie my full tax return and a copy of my homeowners insurance).

A few days before the lock was set to expire I found out that the mortgage company, Provident Funding, was contesting the appraisal that had been submitted 3 weeks earlier. They said the appraisal only had 3 comps (comparable houses) in the report and they wanted 4.  After the mortgage broker got a hold of the appraiser, she went ahead and offered a fourth. After another day or 2 with no word, I found out Provident Funding was now saying the fourth appraisal was invalid since the fourth house had a basement and our house did not.

To make a long story somewhat short, I am now in a 12 day lock waiting to hear back the latest about whether Provident Funding will make good on their initial offer or if they will cancel my refinance for some bogus reason.

I’m wondering now if I should have just gone with a local bank that was also offering the 4.75% rate the day I locked in my mortgage. I feel if i had I might not be sitting in this situation but on the same hand I don’t believe this is the mortgage brokers fault as he also would like to get this refinance finished.

As with all other blog posts, I feel the need to offer up some deal advice even though my refinane is not going as planned. I’ve been updating the mortgage rates at a few local Delaware / national mortgage companies. This is by no means a complete list, but feel free to check DealCatcher daily (around 11:30pm) for the most up to date rates from the banks below

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