I JUST refinanced my house last month to an amazing low rate. Since the refinance, we have found a house that we are very interested in buying to be our primary residence (of course this house was not listed prior to our refinance, but this house is too great a deal to pass up). With the new refinance rate on our current home, we are under contract that this is our primary residence. The only way it would be possible for us to even purchase the new home, would be contingent upon sale of our current home. Assuming that we sell first home, and buy 2nd home with mortgage from the same mortgage company, would that still be considered a breach of contract?
IANAL... No it is not a breach of contract. When you refinanced your home you represented that you intended to occupy the home as your primary residence. As this is where you actually live now you have fulfilled your contractual obligation. Where you live in the future or additional homes you purchase do not impact the status of this existing loan.
Please share the details of your refi if it was such a great deal....
posted: Jan. 8, 2013 @ 9:36p
Thanks for your fast response! The refinance was generated by my own mortgage company and they paid all closing and associated costs. I kept receiving announcements via UPS from them for months, and thought it was a scam and like an idiot ignored them. Finally, I called to verify and it was the real deal. I was able to lower my interest rate from 5.5% to 3.25 with no prepayment penalty.
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