My bank wants to refinance my loan after closing due to errors that THEY made, is this legal? Do I have to agree to the changes?

Yes and No.. One of the documents that you signed as part of your initial application and disclosure packet was called the "Compliance Agreement:" It states the borrowers will help the lender after closing to correct errors in the documents at the lenders request. This is meant to only apply to clerical errors so that the loan will meet requirements from Fannie Mae or FHA, etc., so the file can be sold on the open market.. I've seen this happen a couple of times within my career as a loan originator, and the few times it did happen, the lender gave the borrowers a small incentive to do it.. Although, you could fight this since having to do a completely new refinance is "in my opinion", outside the scope of the compliance agreement, If the lender is willing to compensate you for their error, it's better to comply than not.. Also, because of Brexit, the interest rates have come down in the past few weeks.. So, if you can do a refinance, get a lower rate, finance only your existing balance, no cash out of pocket, and your able to skip a payment.. then "Why Not"!!! The alternative is that you stick to your gun's and don't comply.. they could threaten legal action, and it could get pretty messy.. so if your not up to all that nonsense, then just go along.. especially if you can benefit from it.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com NMLS# 226347