Originally our mortgage broker said we were going to get this great mortgage that included 100% financing, a 6.3% interest rate and NO Private Mortgage Insurance. Now, as the paperwork is coming through, our interest rate is up to 6.8% (which we are ok with b/c I know until we lock this in it could still go up), but now I just read that we have PMI. WHAT THE HECK?! Is this something that I should question or just go with the flow? Were we stupid to believe that we could get a mortgage without PMI and not 80/20??? What are your thoughts...
aCeRBic2007-07-29T20:18:30Z
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You might have looked at APR which is always higher than the actual interest rate, ask them.
If your rate is not locked in than it did go up, and if you were suppose to have No PMI or Lender paid PMI and now you have PMI I would be weary of what is about to come.
Why did you not go for the 80/20 or 75/25? This would guarantee no PMI.
Also if you have NO PMI then they are just going to roll it into your rate.
You need to call the banker at Wells Fargo and start asking them these questions.
I myself am a Loan officer and I will tell you I compete with Wells Fargo a lot, generally if a customer ends up going with Wells Fargo and not me they will almost always call back and complain about all of the "hidden fees" they encountered. I'm not trying to sway you away from Wells Fargo but Beware they have some shady tactics there.
This is a classic case of a bait and switch sitauation. Unfortunantely there are some un-ethical mortgage brokers out there who string you along to the end hoping that you will do the loan anyway, because of how much time you put into it (appraisal, paperwork gathering, etc etc... Based on what you are saying you should walk away especially considering the extra PMI you are going to incur on your payment. Walk away from this person, because what they have done is un ethical and the mortage insurance is something that you do not need to incur. If you need any further information feel free to contact me on my email and I will help guide you in a more reasonable direction.