I'll see if I can get to the point and make this understandable
We contacted a local WellsFargo about a mortgage refinance.
They said come on in and they'd see what they could do.
We wanted to combine the first($98,000)with a second($14,000) also adding my mothers burial loan cost($10,000),so we could drop our monthly payments.Total,$122,000.Monthly payments of $1,325.
One of the first things we did was sign the authorization to check our credit.Those came back...not so good....640(wife) and 642 (mine).
This seemed to be fine with the fellow working up the numbers
He said with the state of the mortage world they(WF)had dropped their
requirements for FICO scores and they'd still be able to work something out.
We also provided him with all the usual stuff...pay stubs,W2's, auto loans,ect.Signed a few documents and agreeing that he'd work up a 30 year loan at 4.5%(4.98?APR) dropping our payments from $1,325 per month to about $850 per month by combining the 1st,2nd and the burial.
We made an appointment to come back 2 days later.
Upon returning we sat down and he said all looked good,but our income was just a touch low....I'm unemployed right now so we've only got my wifes income.
He said his manager figured that if we agreed to let them refinance our van(2003 Grand Caravan)it would drop our van payment by $60 and that would help.....We didn't want to because we would have it payed off in 6 months ($300@ month).
He almost insisted....every little bit will help on the papers.
Reluctantly we agreed and signed.
By doing so we added three years to the loan and about $4,000!
Then he gave us a line of credit(a card).He said when we recieve the card to activate it,but under no circumstances are we to use it.He said it would look better on paper (available credit to debit/income,or something like that.We recieved the card two days ago....$5,000 limit at about 25% interest).
Another appointment the next day to sign a couple more things.
About a week passed.....
Today we received the Preliminary loan agreement.
The amount of credit provided,$114,000.......we needed $122,000.
Monthly payments,$1,050.....we'd agreed upon something around $850.
Loan interest rate 10.00%(10.54% APR)......we'd agreed upon 4.5%(4.98%APR).
I hope I've made this clear enough for you experts to figure out
My $ numbers are rounded.And I'm sure I left a couple details out.
I hardly understand any of this.
Why are the numbers so different than what we wanted?
We're going to set up another appointment to return the contract and if this is the best they can do...it will be unsigned(either way unsigned).
I remember in the past WellsFargo seemed very tight with their money and required high credit scores to lend.
Do you think we were douped?
After our first visit they knew we wouldn't qualify for the 4.5% loan.
Knowing we would though qualify for the 10+% loan.That we would never agree to the higher interest and monthly payment(we have a 6% mortgage loan now)and that we'd back out.
Knowing this they still made a buck on us(4000 bucks) by refinancing the van.
Is this a common practice with lenders?
Connect with Facebook
Linear Mode
