Refi help!

[riverwed070707]

I started the process of refinancing our house back in November. After a long drawn out process (IMO primarily due to the mortgage guy dragging his feet to get the paperwork done) we are scheduled to close on Friday BUT I still have paperwork that needs to be filled out that I'm waiting on from him. On top of that, he sent me a new disclosure this morning and not only has the rate gone up (I know this can happen but it is higher than what they have listed as their rate for today whereas before we qualified for the lowest) on top of that, its showing we need to bring $1200 more to closing than he initially told us. I feel like we're kind of being jerked around. I haven't signed a rate lock yet, or anything for that matter outside of our initial application back in Nov. So what I'm wondering is 2 things:
1) is there penalty for going elsewhere at this point?
2) we paid $425 for the appraisal. It took place in December. If we go elsewhere, can we take that with us? I know lenders typically like you to use their appraiser but I wasn't sure if there were exceptions. I really would hate to waste that money.

[Slug]

You can walk away as long as that's all you've done, and I would probably encourage it. You deserve the best available rate esp. if you don't have a lock in place. I do not like to reward unprofessional behavior. Speak up now BEFORE closing. It makes no matter if you need to push closing out to get all the details finalized correctly.

[Slug]

See also: Mortgages Jump To Highest Level In 4 Months | Bankrate.com

[creditcardfree]

I would call the lender and tell him you are considering backing out...he might jump some hoops for you to get what you need, not sure about the rate since you didn't lock in. I agree that it is okay to make closing later to make it work. Make sure he explains the additional $1200, too!

You would only be out your appraisal/time based on what you have said. Generally, other lenders will want their own appraisal. I would try to work it out with this lender, but don't hesitate to walk away either!

[sblatner]

Walk Away! Tell the guy that he has jerked you around and the rate is higher than you thought and you aren't going to pay $1200 that you didn't expect. There are better refis out there. Also, no cost loans are pretty easy to find depending on where you live.

A similar thing happened to us when we bought our house. We felt pressured and signed the loan papers and have always regretted being bullied into something we didn't want to do. Yes, we wanted the house but felt like the mortgage broker pulled a fast one on us and knew we didn't have a choice but to sign.