I took out a construction loan to be converted into fixed rate mortgage loan in XXXX XXXX. In XXXX XXXX, I received a letter from Washington Federal that my mortgage rate will be a fixed at 4.875 % for 30 years with a 1 % pre-payment penalty provision prior to XXXX XXXX. I sent them a letter explaining that I was offered, in open market, a 30-year-fixed-rate of 3.75 % -- and with XXXX-fees-or-costs. 
When I signed the initial papers in XX/XX/XXXX I was told that the bank would be able to match market-rates for fixed-rate-mortgage in the future. But the bank refused to match the new rate, despite their initial verbal promises. I was left with a choice of paying nearly 1 % higher rate to Washington Federal for next 30 years to save the 1 % penalty, or paying 1 % penalty and saving 1 % yearly for next XXXX years, by refinancing elsewhere. The decision had to be immediate because the rates can change rapidly. 
I had to pay 1 % penalty to Washington Federal to get a 1 % lower fixed-rate for XXXX years. This was completely unnecessary if they had followed through on their initial promise that they would match market rates for fixed rate mortgage to avoid refinancing. 
