I need some advice. I have only financed two homes in 25 years, and I thought I knew a little bit about the financing aspect of refinancing a house. We had our previous mortgage through Flagstar bank, and encountered no problems. We had a arm/3 which was about to mature and a interest rate of 5.5%. My roomates good friend is the one who put this new loan together for us. My roomate wanted a interest only type loan, so his frined put together a loan which would allow us to pay interest only at 3.5% for the first 3 years. We also had the option of paying the principle and interest to fully amoritize the loan.
We were set to close on June 25th and the "friend" was supposed to come to the house with all the paperwork. The "friend" could not make it so the title company had a courier sent. Even at the time we were signing the paperwork, I could see that the amounts, interest rates were not what was promised or explained. I called our broker or "Friend" at that time and he said that he assured everything would be what he promised us. This "friend" that my roomate was working with came with some great references, he had completed numerous loans for a lot of the cirle of friends that knew him, so I had no reason to doubt anything. The paperwork was notorized and signed, the loan was funded. When our first loan payment came in last month, it was NOTHING that we discussed. When we called the loan officer, he assured us that he would make it right, and to pay that payment, and he will take care of it. I just received the next payment, our interest rate right now is 7.58% and to pay the fully amoritized amount we would have to pay $2,300.00. We were paying $1730.00 with Flagstar. The "friend, " loan officer said he was meeting with the lender (Greenpoint Mortgage) to get everything straightend out. Is there any recourse? The loan closed on June 25th. Who can I call, report? I sincerely hope that he will make it right, and render what was promised.
Any advice would be appreciated!
Thank you.
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