We were ripped off by Randy Jabro when we refinanced our house. He gives one good faith estimate which seems very good to us especially when we compare with others Good Faith Estimate. But when the notary comes to sign, it will have no relation to what was mentioned in the good faith estimate. Our principal balance on our house was about 258000. But after refinancing it went upto 273000. We even had to pay PMI just because their valuer kept our value of the house well below the market price which now we have to pay for 5 years. They kept the value of the house 10000 less than what was valued by another valuer one month ago and the excuse they said was that since this is FHA loan, it has to be a FHA approved valuer even though the other valuer was also appointed by another FHA mortgage loan company. They also made us pay for the valuer from our pocket as well as they charged fee for valuation which they rolled into the loan. They quote a low interest rate but actually they are charging us points even though it is not shown as points. They charged us 0.86 points even thopugh it is not shown in our HUD statement.
When we found that the terms had changed completely we decided to walk away from the loan. We asked him why the new final loan amount is 273k instead of 265k as promised in good faith estimate. He said you will be getting back the Mortage Insurance Premium from FHA close to 3000. Plus you dont have to pay two months mortgage etc. So effectively it is not much he said that you are coming up with. But after months of waiting we found that there is no refund from FHA on Mortgage Insurance Premium as this company had taken directly from them. Also to close the previous loan they take an extra months's mortage payment. So our payoff amount was around 261000. So effectively you are not paying one month's mortgage instead of two months payment as claimed by these companies. Also he promised our after one month if the value gets 296000, he will take off the PMI. When the zillow price of our house reached 306000, I contacted him to see if the PMI can be taken off. I left several messages and emails, but still there is no reply from him about anything.
In short this guy will tell you all sorts of lies to make you believe that it costs you nothing to refinance but from my experience it was a complete ripoff. Never deal with this company or Randy Jabro.
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