First time home buyer - locked in. Massachusetts

[timkansas]

So.... I locked in a rate of 6.125% with one lender by paying for the application fee, credit report, & appraisal fee. I want to switch lenders b/c I have found a cheaper rate. Also, they haven't appraised the house yet. If I do this, will these fees be refunded?

Also, since I can't afford to put 20% down, I have to pay PMI. Is PMI tax deductable in '08?

Thanks.

[Marketeer]

1. It's entirely dependent on the agreement you signed with the first lender. Read any and all paperwork you signed.

2. See this link: http://www.mortgagenewsdaily.com/126..._Deduction.asp

[timkansas]

I never signed any agreement, just provided my mortgage broker with a payment of 300 for the application fee, 20 for the credit report, and 250 for the appraisal fee. So, do you think this will all be refunded? I only gave them this payment because they stated that it was standard procedure in order to lock the interest rate. But now I found a better one. thoughts?

Thanks for the info on the PMI.

[Marketeer]

You had to have filled out a mortgage application of some sort, which probably had some language on it somewhere about fees. But, if you're asking if there's a law that requires them to refund your money, there isn't. If the fee was to process your application, and they've processed it, then you received the service for which the fee was intended, even though you chose not to go forward with that company.