Took a loan from Ameriquest and was told that it was a 2yr fixed rate with a 2 yr prepayment penalty and then would adjust to an adjustable rate and we would be able to refi. Sounded good-rate was at 5.99%. I assumed that the loan agent was telling the truth so unfotunetly we signed paperwork-but We never saw anything that said we would still be stuck in the loan for 1 more year after it adjusts. It is going up 2% and $460 more per month.
I started calling other brokers/lenders because I knew we wanted to get away from Ameriquest and then they called me asking me if I authorized another company to run my credit. He asked if we were refinancing I said yes. He said they could do it for us, but would only be able to waive Half of the prepayment penalty even though I was refinancing with them. I said we didn't have a prepay anymore. He told me to my Surprise that we have 1 more year so now we are stuck.
Most lenders I have talked to said that the industry standard is 2yr fixed w/a 2yr prepay. Something interesting I just discovered is that I was not given the promissory note in our escrow papers. Maybe there is something in there that they don't want me to see.!! Will request.
Anyways to anyone who has Ameriquest, watch out and don't go with them no matter how good the loan sounds. If David or Ken from Holland MI (or anyone) reading this, did this happen to you? And is there a way to get out of paying the prepay?
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