Wells Fargo Mortgage Misrepresentated refinance to lower interest which would lower payment, to up pmi insurance Lancaster, California
Wells Fargo Mortgage enticed (they did the soliciting) me to refinance to a lower rate on my home mortgage, which would supposedly lower my payment. Instead WFM used the refinance as a reason to up my PMI cost of the mortgage.
This tactic actually upped my payment by 100.00 dollars a year later. I was made to believe the payment was lowered when I refinanced (per documents). What I believed WFM did was hide the cost of PMI until a later date when escrow accounts per depleted and I needed to pay more every month because PMI policy increases in escrow accounts (payments to WFM) was not included in my documents on the date of refinancing.
I believe this was a predatory practice of getting consumers to refinance and not telling the actual cost of the new loan. The upping of PMI is a direct shift of cost to the consumer from WFM, that benefits Wells Fargo Mortgage.
1 Updates & Rebuttals
MochaG
Springfield,Virginia,
United States of America
PMI
#2Consumer Comment
Wed, April 11, 2012
I learned about the increment of PMI from a person whom I asked about refinancing because I thought about refinance my home. He told me that the interest rate is lower right now but the PMI is double. As a result, I declined to refinance because my payment per month would not go down.
I agree that WFM should have told those who do the refinance up front about PMI issue even though there are advantages for PMI (1.use as deduction in tax return and 2.can be removed after the home owner owns 20% equity to the property). If you have to pay other expenses/fees for refinancing, this is a rip off.