BBVA Compass Auto-Debit Loan Discount

BBVA Compass Auto-Debit Loan Discount

Posted in the Banking Forum

Since: Aug 12

Springville, AL

#1 Aug 6, 2012
I'm about to get a 30 year fixed loan from BBVA and they are offering a 4.125 rate. If I open an account with them and sign up for auto-debit they will decrease the rate to 4.0, and then if I have $25k in the account before closing they will lower the rate to 3.75.

1) The two discounted rates aren't mentioned in my GFE. Should I get them to put those two criteria in there?

2) To sign up for the "Auto-Debit" I have to sign this form that basically says there will be a $500 dollar fee for canceling the auto-debit and then there is this paragraph:

"In the event Borrower or Lender cancels or terminates this auto-debit arrangement as provided herein, upon notice to Borrower, Lender may increase mortgage rate not rate and corresponding payment amount by removing any interest rate discount or promotion associated with this auto-debit arrangement."

Does this mean they can change my rate from the 3.75 to 4.125 if I ever cancel the auto-debit?

Thanks for any insight on this. The "Mortgage Banking Officer" says there is "No Way" the rate can change after closing, but I don't understand what that last paragraphs means then.

Since: Aug 12

Springville, AL

#2 Aug 6, 2012
Sorry, meant to say "note" instead of "not"

"In the event Borrower or Lender cancels or terminates this auto-debit arrangement as provided herein, upon notice to Borrower, Lender may increase mortgage rate NOTE rate and corresponding payment amount by removing any interest rate discount or promotion associated with this auto-debit arrangement."

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