Washington Federal Mortgage Complaint

Washington Federal Mortgage department,

Conventional fixed mortgage Loan servicing, payments, escrow account Washington

I took out a construction loan to be converted into fixed rate mortgage loan in - -. In - -, I received a letter from Washington Federal that my mortgage rate will be a fixed at 4.875 % for 30 years with a 1 % pre-payment penalty provision prior to - -. I sent them a letter explaining that I was offered, in open market, a 30-year-fixed-rate of 3.75 % - and with --fees-or-costs. When I signed the initial papers in -/-/- I was told that the bank would be able to match market-rates for fixed-rate-mortgage in the future. But the bank refused to match the new rate, despite their initial verbal promises. I was left with a choice of paying nearly 1 % higher rate to Washington Federal for next 30 years to save the 1 % penalty, or paying 1 % penalty and saving 1 % yearly for next - years, by refinancing elsewhere. The decision had to be immediate because the rates can change rapidly. I had to pay 1 % penalty to Washington Federal to get a 1 % lower fixed-rate for - years. This was completely unnecessary if they had followed through on their initial promise that they would match market rates for fixed rate mortgage to avoid refinancing.