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Help..Can we cancelled the escrow and started another loan application through another agent for 7/1.

Hi All,We currently have a 30-yr fixed mortgage at 5.375%. Last week we were going through a refinance to another 30-yr fixed at 5%. Just 2 days before close of escrow, rates went down and we were getting 7/1 ARM at 4.375% which was too good to lose. Its almost 1% difference. So, we cancelled the escrow and started another loan application through another agent for 7/1.In case, the appraisal doesn't come for 7/1, can we go back to the 30-yr fixed at 5%? We already submitted cancellation document to the lender.ours is a new construction and we bought it in June 2010.Thanks in Advance, by spartawoman559 from Sparta, Wisconsin. Mar 18th 2011 Reply


Rick Pelleriti (RickPelleriti)
#363 ranked lender in California - 59 contributions

Check with the original lender quick. If the loan has been cancelled by them, then it is obvious you can't go back - you would have to start over - but good luck having them cooperate with you as you probably already burned a lock.Note - you can get a 5 yr. ARM in the 3.0% range - low ARM rates are plentiful. Your issue seems to be value.Good luck.

Mar 18th 2011
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Chris Gummerson (cgummerson11)
#394 ranked lender in California - 648 contributions

Keep in mind that ARM mortgages make up most of the defaults that have occurred since 2007. Saving a few bucks is not worth the uncertainty. Unless you PLAN on selling your home in 5-7 years, then an ARM makes sense. Rates are too good to fiddle with anything other than fixed.

Mar 18th 2011
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Daniel Lotter (dnllotter)
#27 ranked lender in Colorado - 58 contributions

Sure you can go back. But the loan is probably gone. Would have to start over but rates are better - Should be able to get a loan at 4.25% on a 30 Year fixed (FHA). Or 4.625% Conventional. Tell your loan officer that you want the PAR rate.

Mar 18th 2011
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Jim Marcinkowski (jimmarcinkowski)
#113 ranked lender in Florida - 224 contributions

Depending on many factors, closing costs and how long you are going to keep the house, may not make sense to refinance from a 5.375% to 5%. Make sure your loan officer gives you comparison savings of different types of loans to see what the saving differences are and the risks associated with adjustable rate mortgage. Your personal finances may not make sense to do an adjustable rate mortgage either. Your question doesn't address many of the important details of your transaction but your loan officer should.

Mar 19th 2011
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