[jazzenjohn]

I bought a bank owned home cash. I tried to get a mortgage on it but I had to own it for 6 months so the mortgage was refused. When I reapplied after 6 months, the mortgage broker used the same paperwork and loan terms as the first time. I asked about a lower rate than the 4.875 w/1 point, but he talked me into locking in at the same rate as the first app although I told him I suspected the rate had lowered. I closed yesterday and on the HUD it says "yield adjustment to broker(.625%) POC 1156.25)" I am still within the 3 business days to cancel the loan. What are the ramifications if I do? What will it cost? Should I contact the lender directly? Will it negatively impact getting another loan?

[LisaB4657]

If you cancel the mortgage you will still be responsible for the costs of making the loan such as the title search and appraisal fee. It shouldn't have any impact on getting a loan with a different lender. But if you figure out the difference between the rate you have now and the rate you might get from someone else it might not be worth it after paying the loan costs. Also, it looks like the mortgage broker's fee came out of the 1 point you paid, not from an increase in the rate. That point appears to have consisted of 0.625% paid to the broker as a fee and 0.375% was used to cover the costs of making the loan.