Can I cancel my mortgage before closing?

Almost a month ago my husband and I signed papers to start processing our mortgage refinance with mortgage broker . Last week, my husband found a better deal which is lower interest rate and lower closing cost. Today, my husband got a call from mortgage broker that we can now close the deal. My husband mentioned... show more Almost a month ago my husband and I signed papers to start processing our mortgage refinance with mortgage broker . Last week, my husband found a better deal which is lower interest rate and lower closing cost. Today, my husband got a call from mortgage broker that we can now close the deal. My husband mentioned that we are no longer interested. The owner of the company called and left a voice message that we can't just back out and we have to pay $2,000 for processing fee even though my husband and I signed that the Application Fee, Appraisal Fee and Credit Report Fee will cost us $0.00. The broker company owner also said, that not to pushed this further which I think he meant they can sue us if we back out or if we do not to pay the $2,000. We live in Wisconsin. Do they have legal right to do that? There is nothing in papers that we signed that if we back out or cancel this we will need to pay for this amount. Please need your help. We are so confuse. Will our credit score get affected? Will they win if they decided to sue us? Any help is definitely appreciated. Thank you!
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