I locked my mortgage rate for a 30-year fixed mortgage, but now the
rates moved lower.
I can get 0.25% lower rate right now (locked in at 6.25, I can get 6.00
right now).

My closing is scheduled for Tuesday or the week in January when on
Thursday my lock expires (2 days before expiration).

Can someone recommend what I should do? Should I re-schedule my closing
to happen on Friday when I will likely get the prevailing rate since my
lock expires on Thursday?

Thanks.

In article .com,
wrote:

I locked my mortgage rate for a 30-year fixed mortgage, but now the
rates moved lower.
I can get 0.25% lower rate right now (locked in at 6.25, I can get 6.00
right now).

My closing is scheduled for Tuesday or the week in January when on
Thursday my lock expires (2 days before expiration).

Can someone recommend what I should do? Should I re-schedule my closing
to happen on Friday when I will likely get the prevailing rate since my
lock expires on Thursday?


When you lock in a rate you are locked in against rates rising, not
against rates falling. If you ask your lender, he should be able to make
the loan at the current (lower) rate.


Dimitri

"I locked my mortgage rate for a 30-year fixed mortgage, but now the
rates moved lower.
I can get 0.25% lower rate right now (locked in at 6.25, I can get 6.00

right now).

My closing is scheduled for Tuesday or the week in January when on
Thursday my lock expires (2 days before expiration).
Can someone recommend what I should do? Should I re-schedule my closing

to happen on Friday when I will likely get the prevailing rate since my

lock expires on Thursday?

Thanks."

Did you ask the lender if they will give you the 6.00 rate? I would do
that now, not re-schedule the closing. And where did you see the 6.0
rate? If it;s with your lender, then you have a pretty good argument.
If it's somewhere else, you don;'t have much of a case.

If they won't give you 6.00, then your only alternative is to threaten
to start all over with another lender. Of course, if you actually do
that, you are out the application fee and any other fees you paid this
lender. Plus, unless you can lock upfront at 6.0, you could wind up
worse off. So, if they won't give you the 6.00, your best alternative
is probably to go ahead and close anyway.

writes:
I locked my mortgage rate for a 30-year fixed mortgage, but now the
rates moved lower. I can get 0.25% lower rate right now (locked in
at 6.25, I can get 6.00 right now).

Your tack depends on how you've proceeded thus far and what's at stake
with the closing dates. Are you working with a local loan broker, or
doing one of these online dealios?

Talk to your broker, tell them you've seen these other offers, and say
"what can you do?" I can't help but feel that I'm getting left
behind when the market has moved in our favor.

To really gain traction, you have to be ready to walk, and really have
that flexibility in your closing date. Hopefully you haven't paid any
actual application fees (and reputable brokers shouldn't be charging
you for the honor of collecting a yield spread premium on your loan).

Depending on your relationship with your broker, you could leave them
holding the bag on appraisal and some title work that's been put in
motion if you were to walk, so that would put your broker in a
position to want to make you happy to stay.

Keep in mind there's no way to get another lender to close you on
Tuesday at this point. If you have 2 weeks or more, you would have a
chance to get a loan at another lender.


Can someone recommend what I should do? Should I re-schedule my closing
to happen on Friday when I will likely get the prevailing rate since my
lock expires on Thursday?

I don't think that's the way it works. The expiration of the lock
isn't really at play here.

You do need to talk to your loan broker and see what they can do for
you if anything.

--
Todd H.
http://www.toddh.net/

"Hopefully you haven't paid any
actual application fees (and reputable brokers shouldn't be charging
you for the honor of collecting a yield spread premium on your loan). "

He's paid a lock fee and is ready to close. How many people could be
in that position without paying an application fee? Most mortgage
companies, whether bank or broker charge non-refundable application
fees of several hundred bucks.

writes:

"Hopefully you haven't paid any
actual application fees (and reputable brokers shouldn't be charging
you for the honor of collecting a yield spread premium on your loan). "

He's paid a lock fee and is ready to close. How many people could be
in that position without paying an application fee? Most mortgage
companies, whether bank or broker charge non-refundable application
fees of several hundred bucks.

Then I must be some sort of magician because I haven't paid a broker
either a lock or application fee up front, non-refundably in any of
the 5 mortgage loans I've done.

And I'm also lookin at a major company's wholesale rate sheet, and
while there are underwriting, tax service, and flood cert fees (always
collected at closing for all the loans I've done), none are due up
front. The only up front, non-refundable fees I see are those for
extended (90 day) locks.

"Lock fees" and "application fees" I've been told by several folks are
junk fees a lot of brokers get away with. Perhaps there are wholesale
lenders that charge them to their brokers, but certainly not all.

The original poster should be able to get the lower rate from his
lender unless he's too close to closing, and too much of the final
paperwork has been prepared.

--
Todd H.
http://www.toddh.net/