Security Mortgage ripoff Raised Mortgage rate, after we locked in, so the can make more money! Puyallup Washington
We are buying a home and got a rate of 5.175% locked in. Loan went to the underwriters and got approved. Then we went back in to give them some more information and they had our rate at 5.375% on the paperwork. We asked them about it and they told us that the rates had gone up before we submitted the loan! I checked the current rate for home notes and the rates had actually lowered, not a huge amount, but never raised any amount.
They raised the rates because they did not offer the loan that we wanted and had to farm it out to another lender. The other lender agreed to the 5.175% but that would mean Security Mortgage would not make a profite on the back end of the note. So they went ahead and bumped the rate up to 5.375% and blamed it on the rates going up. I guess they were not happy with making 1% of profit on a 210K house. Talk about a poor excuse for a lender. The diffrence between 5.175% and 5.375% for the life of the loan is $36 Thousand dollars!!!!
Nathan
Puyallup, Washington
U.S.A.
1 Updates & Rebuttals
RJ
Camden,Arkansas,
U.S.A.
$36,000 Appears Incorrect
#2Consumer Suggestion
Tue, May 04, 2004
You say the difference between the interest rate of 5.175% and 5.375% amounts to $36,000 over the life of the loan.
I believe, if you figure more carefully, that the actual increased interest, assuming a 30-year loan of $210,000, is closer to $9,000 total. That would amount to roughly $300.00 per year or $25.00 per month. If you have a 15-year loan, the increase over the life of the loan would be around $4,000.
Total interest for the lower percentage rate over a 30-year loan period is $213,338, while interest for the slightly higher interest rate is $203,960.