Navy Federal Credit Union NFCU Mortgage Bait and Switch Internet

I have been with Navy Federal Credit Union (NFCU) about 20 years. I have had loans with them before and have been satisfied until now.

I applied over the phone for a refinance of my house. I explained my situation that I was a deployed Goverment employee in Afghanistan in support of Operation Enduring Freedom and my home was being rented to avoid it being vacant. The person taking the information informed me that the property would be a classified as a second home, not my primary residence since I was not currently living there, and the interest rate would be 3.125% with 1.25% points. I agreed because my current rate was 4%. I signed the documentation stating to the 3.125% interest rate and gave permission to begin the process.

On November 14, 2011, I am notified after paying a $11.00 credit fee, $400.00 appraisal fee and a $250.00 application fee, that my house is now classified as a investment property and my interest rate is now 4.125% with 1.25% points. There was no way in the world I would have stated the process if that was the rate I was going to be charged. I requested that NFCU either honor the original rate or refund the fees paid.

NFCU's response "take the 4.125% interest rate or not but we are keeping your fees."