I am currently in the process of refinancing my mortgage, and I signed a rate lock agreement about a month ago. I have noticed that this bank and others are currently offering lower rates for the same term with the same or lower fees. I asked my bank to offer me the lower rate, and they refused, saying once it's locked, it's locked. I am very unhappy about this, and I think they are being greedy. They are already making thousands of dollars over the life of the loan, why can't they just give me the lower rate?
I am considering either withdrawing my application and reapplying at the lower rate or even going to a different lender. My bank tells me if I withdraw, I will lose the money I already paid for application fee, title and appraisal. Someone I know who is in banking told me that if I go through with the loan, I have three days to rescind, and if I rescind it, the bank has to refund everything I paid. I checked the law (The truth-in-lending act), and it says all this is true. First of all, is this an idea worth trying? Also, does this make sense for the bank? Wouldn't it be easier to just let me withdraw (or just give me the lower rate) rather than making us go through the closing process? They could have a satisfied customer, but instead, they are going to lose a customer AND have to refund all the fees I paid.
Read more: How to get lower refinance rate after rate lock?
