A
aab287
Guest
We originated a loan thru a mortgage broker in Feb. 2000 in AZ. The mortgage broker stated on numerous ocassions that the mtg. he was "selling" us had a prepayment penalty of: 3 percent (of loan balance) if paid off in 1st year, 2 percent in the 2nd year, and 1 percent in the third year. We are now in the process of refinancing and discovered the prepayment pnlty is really 6 months of interest, which is a significantly higher penalty. We contacted the mtg. broker who maintained that what he quoted us was indeed correct. However, upon further investigation the mtg. broker discovered he had misquoted us and agreed verbally to honor the prepayment pnlty he quoted us due to his mistake. He urged us to refinance thru him, but stated that he would pay any additional pnlty charges above and beyond the 2% we would have owed under the terms he quoted us. He is now stating he will only pay us if we refinance thru him so he can use the money he makes on our new mtg. to pay us back for the additional pntly we incurred due to his negligence. Do we have any recourse? We feel we were mislead and are being coerced into refinacing with him?