Refi - Lender requesting we delay closing by 2 weeks

[153]

Refinancing a mortgage. Closed on the original mortgage October 19 2018. Supposed to close on the refi October 7 2019. Refi was with same lender as first loan. Lender called us, and basically said can you delay your closing by two weeks as a favor? Apparently when they sold my loan to the new servicer, there was an agreement that they would need to pay back the commission if the loan was paid off within a year. Delaying by two weeks fixes this for them.

By my math we will pay about $150ish more in interest (daily interest on current loan is $54, new loan my math is $44), but otherwise no additional costs to us. Lender told me rates have gone up, but they will pay the points to buy back down the rate, as that's less of a loss on their end than the clawback.

This lender has done 3 mortgages for us (including the refi) and has had the best rates every time. I don't want to damage the relationship, and I'll be honest I don't want to be "mean" if there's no downside to us.

If I can get them to comp me the $150 in carrying costs, is there any downside to agreeing? What should I ask them to agree to in writing?

All arguments for and against welcome.

[Kronsey]

Sounds like a simple solution. Show them the math for the $150 of interest. Request they credit that back to you at closing (or however necessary to make it legal) and move on with your day.

If you're feeling real feisty, ask for a little more money for your troubles (or maybe a gift card to your favorite restaurant) :)

[Jon Bon]

This lender is not owned by your friend or anything right?

I mean the heartless capitalist in my says well, I'll delay if you credit me basically the whole commission less $200 bucks or something like that.

A bit surprised they came to you asking without offering to pay the interest to you AND some small compensation on the side. Maybe you have a vacation scheduled or getting a root canal, whatever. They are the ones who need the favor, hat in hand and all that.

I'd push back pretty hard, you could have gone with anyone on the refinance. This is a business relationship no more, if they are burned by their own terms so be it.

I would not worry too much about the relationship, again its business. They make money off you. They are not going to turn you down in the future.

[clarkfan1979]

If it's a relationship with a mortgage broker that you want to save, let them know that you will help him/her out, but they "owe you." If it's a relationship with a "lender", I would do what is ever best for you. They are doing what is ever best for them.

[Dicey]

If it's a relationship with a mortgage broker that you want to save, let them know that you will help him/her out, but they "owe you." If it's a relationship with a "lender", I would do what is ever best for you. They are doing what is ever best for them.

This. What will they save by doing something that's going to cost you. Maybe offer for them to share half the savings with you or crank the interest down a tad. They do it for their employees, so it theoretically can be done.