Consumer complaint received 2023-05-28
Product: Mortgage — Home equity loan or line of credit (HELOC)
Issue: Applying for a mortgage or refinancing an existing mortgage — 
Company: FIFTH THIRD FINANCIAL CORPORATION (NC)

My husband and I opened up an equity flexline with 5/3 Bank on XX/XX/XXXX. It had a fixed-rate lock option that could be exercised at any time during the ten year draw period. In the spring of XXXX, I called the number on the fixed-rate lock option paperwork to discuss our specific needs so the bank could help us " determine the best solution for your situation '' as stated on the document. We wanted to activate the fixed- rate lock option. The fixed-rate lock option was around 6 % at that time. Since we did not plan to draw off the flexline again, we wanted to fix the rate and avoid continuously rising interest rate only payments. We also wanted to start paying the principal down. All of this was particularly important to us as my husband was forced into early retirement during the pandemic. We have been good 5/3 Bank customers. Both our first mortgage and our equity flexline are with 5/3 Bank. Instead of giving us " the best solution '' we were talked out of the fixed-rate lock option and encouraged to apply for a new equity line with 1.99 % interest rate. We were told this was the best thing to do because in a year the country would be in a recession and interest rates would be going down. We were assured by the local branch manager that our loan would be processed quickly as long as we proceeded with the application right away. We were rushed to proceed with an application in order to get a 1.99 % interest rate that was " not going to be available for long. '' We were also assured by the branch manager that we would get the loan as we were good customers with a good credit rating. Well, the loan process was not quick and in the end we were denied the loan. By this time, interest rates had risen significantly and the fixed-rate lock option was not a great deal anymore. The thing is, we were denied the loan because we supposedly did not have enough income to afford the payments on a new loan with a 1.99 % interest rate. What nonsense! We can't afford a 1.99 % interest rate but we can afford an 8.74 % interest rate which is what we are now paying? Our interest only payments on the original equity line have skyrocketed from {$92.00} in XXXX XXXX XXXX to {$180.00} in XXXX XXXX  XXXX. We are senior citizens and this is predatory lending. We should NOT have been talked out of the fixed- rate lock option in the spring of XXXX in the first place. The bank did not give for us the " best solution for our situation '' as promised in the paperwork. It gave us the best solution for THEIR situation. We have been paying thousands in interest and not paying down our principal because of bad advice and what feels like a con job. We believe the bank never intended to approve a new loan. Their goal was to stop us from getting a good fixed-rate lock option while one was available. We have paid hundreds in unnecessary interest because of 5/3 Bank 's predatory practices. We would move all our business elsewhere if the timing wasn't bad but we believe 5/3 Bank knew that would the case, too.