Legal Question in Real Estate Law in California

mortgage co. changes approved rate

A mortgage co. sent me a document

stating that my request for a home

equity loan had been approved with no

futher conditions to be met and that a

loan agent would contact me for signing

the documents. Two weeks later I

contacted the mortgage co. and they

repeated that I was approved for the

loan at the originally quoted rate. The

next day they notified me that that the

rate would be increased by 1.52%. No

reason was given. Two calls that I had

made resulted in different explanations.

Finally I was told that the rate change

was due to the fact that my residence

was a condo. This co. already had that

info. because they have my mortgage and

I gave them that info. when I applied.

I want to know if I have the legal right

to keep the rate and terms which were

originally quoted to me and given to me

in writing. The interest rates have

risen since my original application and

I feel that they should honor their

original terms. Thank you.

1 Answer from Attorneys

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