Here's my situation. I'm working with a mortgage broker to refinance my existing mortgage. I locked in a rate on Feb 14, 2012. The lock was for 30 days. The broker has now told me that they cannot complete the loan in the 30 day lock period, so I'll have to pay $1,300 to extend the rate lock.
The reasons they have given me for not being able to complete the loan on time are
1) I entered in an incorrect SSN for my wife on the initial intake form (this was corrected on Feb 17)
2) They have been overloaded with purchases and refis
I understand my responsibility for the incorrect SSN, but I'm having a hard time understanding how it should cost me $1300.
What are my options? Can I simply use another broker? Are there rules that are in place since I have locked with this broker?
Is this common practice? If I do move forward with them, I will try and negotiate either a lower payment to extend the lock or a lower interest rate (since it seems like rates have dropped in the past month (mid Feb 2012 to mid Mar 2012).
Thanks for any advice!