I was in the market to buy my 1st home. They approved me for a 5.75% rate and $910/mo payment with flexible payment options, no prepayment penalty and no fees. They switched rates and programs on me at least 3 times. Then when I went to sign the papers they had swutched the rate up again and put a prepayment penalty addendum to the loan. The final papers had a rate of 6.775% plus closing cost, prepayment penalty for 3 years and a monthly payment of $2300 with no payment options. I had no choice but to sign because escrow had to close that day or I would lose my deposit of $40,000.
They admited that the loan officer was at fault and credited me about $800 towards closing cost. But, I have a very high monthly payment now and I have to work twice as much to make the payment. On top of it all, I can't get out of this loan without 1st paying a hefty prepayment penalty.
This is a classic example of Bait & Switch.
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