Refinance mortgage denied

[ECP]

What is the name of your state?Florida.
My husband and I decided to put our home up for sale on a limited 6 week offer. We decided to stay at just under the 6 weeks and went to refinance. We have a first at 200,000 and a second mortgage at 90,000. The first is at 6% and the second is at 9%. After shopping motgages online we came up with a good offer and we got the paperwork today. We then got a call from the broker who stated that since we had just removed our home from the mls we are unable to try for a new mortgage for SIX MONTHS! We have an appraised value of 650,000 on the property and it is worth more because of the location which could not be compared.We have offered to put in writing that we will not sell for 2 years. We have never heard of this, has anyone out there? Any suggestions or advice?

[tranquility]

Find a mortgage broker who can seek out lenders with a hard pre-payment penalty. They'd still loan to you.

[seniorjudge]

Originally Posted by tranquility

Find a mortgage broker who can seek out lenders with a hard pre-payment penalty. They'd still loan to you.

I agree. There are more fish in the sea.

Be careful when you go shopping online. Some of those places send out your application to tons of lenders and every time they check your credit, your credit score goes down.

I'd look for a loan with somebody local.

tranq...what is a "hard" pre-payment penalty?

[moburkes]

From the web:
A soft pre-payment penalty allows you to payoff your loan at any time, but will still charge you a penalty fee if you choose to refinance within a stated period of time, generally 3-5 years. Many times accepting a soft pre-payment penalty will be in exchange for a reduced rate or a reduced fee.

A hard pre-payment penalty will not allow deviation from the original terms stating the time that you must maintain/retain the original the loan. Either paying off the loan or refinancing the loan will trigger the penalty. Many lenders will charge a penalty equal to 6 months interest on 80% of the loan balance. If your loan is relatively new, this penalty can be quite costly.

[seniorjudge]

Thanks, mo.

I can't keep up with all this jargon.

Here (and I am not making this up) is an excerpt from something my stockbroker sent me:

"...Share price appreciation in wake of $23 per share take-private proposal, rich metrics implied by the deal, and [name deleted]'s thorough analysis resulting in endorsing [name deleted]'s bid, we believe leaves little likelihood that a superior bid emerges...."

I've been to a county fair, three goat roastings, and a hanging, but I have no idea what that means.

[moburkes]

ROFLMAO. I have no idea either. Whatever happened to putting stuff in layman's terms?

[tranquility]

While I don't disagree with moburkes definition, it is a little more detailed than the usual I explain it.

In a soft prepayment, you are off the hook if you actually sell the house. (As opposed to refinancing or otherwise paying off the mortgage.) In a hard, the penalty stays no matter what you do.

[seniorjudge]

Originally Posted by tranquility

While I don't disagree with moburkes definition, it is a little more detailed than the usual I explain it.

In a soft prepayment, you are off the hook if you actually sell the house. (As opposed to refinancing or otherwise paying off the mortgage.) In a hard, the penalty stays no matter what you do.

Okay, but I think you are avoiding the real issue here: Have you ever been to a goat roast?