Truth in Lending Disclosures

I'm in the process of refinancing my home. The mortgage company quoted an option rate loan, but had me signed disclosures in front of a notary for a fix rate mortgage at a lower rate. I had to pay the notary out of my pocket for her appearing at my house.
I now realize the rate the agent quoted was incorrect, when investigating the margin and index, as well as the fees being higher. Everything told me prior to this appointment would have been a lie.

Are they required to fund the loan with the lower fixed interest rate? Can they charge more for the fees besides the fees listed?

When you spoke to your attorney to review the contract, and your concerns, what did your attorney say to you?

That's what I thought . . . no attorney is involved. So, after the fact, you come here asking questions about a contract that we can't see?

Sheesh!

Preliminary and final Truth in Lending Disclosures are exactly that ~~ disclosures. They are not binding agreements between you and your lender; they simply disclose your loan terms to you, i.e. the total amount financed, your monthly mortgage payments, prepayment penalties (if applicable) late charge fees, etc. They are as confusing as the time of application as they are at the closing table and I don't know a single person in the industry who can explain in simple, plain English what the break-down of figures means to the average homebuyer. If you are refinancing, I would look at both of those disclosures and make certain the monthly mortgage payment remains the same. That's just about the only figure you'll clearly understand. That monthly principal and interest figure should match what interest rate you and your broker agreed to at the outset. Check it carefully as it may change, especially if your loan is not "locked in" with your lender.
YOU are in charge of your refinance. The Option ARM products are tricky and alluring with a deceptively low starting interest rate that can spiral out of control. You were smart to analyze your index and margin: the average homeowner looks to their broker for guidance and that's often not your best bet in this day and age. If you want a fixed rate, insist on both an executed "Lock In Agreement" where your broker guarantees your interest rate for 15, 30 or up to 45 days (industry standard) and a Commitment Letter guaranteeing that rate for the same length and time. Those are the only two documents that bind your lender to a contract before you sign your closing papers. Be sure that both forms clearly state your terms, i.e. fixed vs adjustable, correct mortgage amount and interest rate before you sign either one. When you look at those forms, make sure you take into consideration a 3 day Right of Rescission "cooling off" period which is mandatory in many states. You have 3 days to change your mind after you sign your closing papers and you are well within your rights to cancel for ANY reason, as long as it's before midnight of the 3rd working day after closing.
ALL fees are required to be disclosed by lender at the time of application. By law, they are required to be disclosed clearly (itemized separately) on a preliminary Good Faith Estimate that you signed with your preliminary disclosures. The Good Faith Estimate is not a legally binding contract, but yet another preliminary disclosure required by law to protect the consumer. If your loan is not locked in before you sign closing documents, you will need to carefully review your closing statement (itemized list of ALL of your costs) and that's the time to negotiate if you do not want to pay them. That's also why the 3 day Right of Rescission period was created.
These are just the federally required procedures. Depending on your particular state, there is a second set of procedures to follow. If your lender made you sign PRELIMINARY disclosures at the outset, you are working with a reputable lender who will have no problem giving you either form. Your post didn't state if you signed closing documents, and I'm assuming you haven't at this point. If you have, and more than 3 days has elapsed (and you inadvertently signed off on the 3 day Right of Rescission,) you are already bound by the terms of your new mortgage. That mortgage note is a legally binding contract, regardless of whether it contains your original intent .. when in doubt (and considering it's the next 15 or 30 years of your life) consult an attorney BEFORE signing anything. Good luck!