I have been shopping for a REFI, and finally decided on a interest only through quickenloan.

I had shopped and they seemed to have the best over all program for me, (basics=5/1 Interest Only @ 6.25%). I haven't signed anything, but I did give them a $400 good faith deposit, and they sent me DOCs. Then, NO JOKE, 10 minutes after we hang up, my credit union calls back and says the can get me the same thing @ 5.5% and lower closing costs to boot!!

I gotta go with my credit union, I'll save $200 a month and abotu $2k in closings...

Can I back out with quicken? Can they force me to do the loan with them, even though I haven't signed anything?

Taking into consideration that I am not a residential lender:

AS long as you haven't signed anything, then yes you can back out. Residential mortgages are a good deal for the consumer as you can even back out within three days of signing.

You can say goodbye to your good faith. If they already appraised the property and pulled your credit report then the money is gone.

For more information on being able to back out even after you sign the documents, look for "right of rescission" in the search engines.

On a refinance depending on what state your in you can rescend up until 3 days after the closing. Only on a refinance not a purchase. The only thing you might lose is your deposit, you have to look at the fine print. That is usually decided by the lender. I am from New York but i know the 3 day on refis is for most states.

Thanks for input.

Yeah, reading through the disclosures, it looks like my good faith is gone, but I'll save sooooo much $$ in the long run, heck, just in closing costs, I just gotta let the good faith go and just forget it.

I just hope my credit union comes though as promised, she already called toady saying the rates may have went up???

(I honestly feel sick about this whole process, I feel like I may vomit, and I am not just saying that, I real feel sick with stress)

Do not worry so much, just looked at the rates and the worse case scenario is that you will be paying 5.6% instead of 5.5% still a big savings over the initial quickenloan proposal.

Don't worry about it. I can't believe how hypersensitive people are about the best rates.

If you have a mortgage for 300k, and get a rate of 6.5% for 30 yrs your payment is about 1896.20 per month if the rates go to 7% you're only paying an extra $99.71 per month. All you have to do is prepay your mortgage an extra 9bucks a month and you've recouped your increase in interest you're not paying that you would have.