I thought that when mortgages get sold to other lenders, everything is carried over and untouched. My payments went up from $1,470 to $1,576. It got sold from Quicken to Rocket and now is on Carrington.
Why would my rate suddenly change when I have been making payments on it without anything changing?
You need to contact the original lender or pull your original loan documents. If you were locked in at 2.3% with no clause, what happened was an error or illegal. Work on this asap.
Orion said:
You need to contact the original lender or pull your original loan documents. If you were locked in at 2.3% with no clause, what happened was an error or illegal. Work on this asap.
My bet is something illegal. Carrington is shady AF.
@Wylie
My loan was also bought by Carrington years ago. They’re the worst!
Ellis said:
@Wylie
My loan was also bought by Carrington years ago. They’re the worst!
Oh my God do they suck. I’m gonna triple check my docs now after seeing this
Orion said:
You need to contact the original lender or pull your original loan documents. If you were locked in at 2.3% with no clause, what happened was an error or illegal. Work on this asap.
Unless it’s actually a change to escrow? I hope people would understand the difference
@Shan
That’s a separate account and a set amount that only changes for tax/insurance… The borrowing rate wouldn’t change because those items do. And you generally get a separate notice when that amount changes if your escrow account is over/under.
Double check your paper work and make sure you are not looking at your rate and APR… The APR is usually higher, and of course double check to see if your property taxes and Homeowners Insurance have changed, this could be the reason for your payment increasing.
@Uma
My guess was their taxes increased, not their rate.
Blair said:
@Uma
My guess was their taxes increased, not their rate.
Yeah, my guess is OP forgot exactly how much was their rate.
Blair said:
@Uma
My guess was their taxes increased, not their rate.
Or their homeowners insurance. That’s been going up for a lot of people. New lender may have adjusted escrow.
Blair said:
@Uma
My guess was their taxes increased, not their rate.
Or their homeowners insurance. That’s been going up for a lot of people. New lender may have adjusted escrow.
Escrow would change but that doesn’t change the borrowing rate or anything related the mortgage portion of the payment.
If the mortgage portion of your payment is $1,000 at 4% and your taxes and insurance go up 2%, your rate and mortgage part of the payment doesn’t increase because of the new escrow amount. It would still be 4% and $1,000. Your overall payment will go up, yes, but not your rate and mortgage portion of the payment.
@Blane
They are just saying their ‘payment’ went up, which I assumed meant they’re simply being charged more each month. I did not get the idea they did a deep dive on the details here. That’s why I think it’s just as likely this is taxes or insurance than it would be an erroneous or nefarious rate change.
@Zee
Based on title they are saying a rate change. That might be difference between APR and effective rates, but needs to be validated. You are right if it were just payment then something escrow would be a likely assumption
@Uma
My initial thought was wondering if it was in fact that the escrows changed. The rate should not be changing when the loan is sold. Only other thing I can think of is that PMI is now being included in the rate as opposed to being shown/calculated separately?
quicken and rocket are the same company
Corey said:
quicken and rocket are the same company
And both are companies I stay away from
Corey said:
quicken and rocket are the same company
And both are companies I stay away from
Out of curiosity why? I refinanced with Rocket several years ago and it was great and I’ve had no problems since. Their mortgage app is great too. Why do you avoid them?
@Joss
Rocket overcharges you to make up for all their marketing and advertising. Your experience might have been good, but it’s a coin toss. If thing start going sideways you can be in for a rough experience. Also, they are slimy and were just sued by the CFPB for illegal kickbacks to real estate agents.
@Ben
Gotcha, thanks good to know