If you lock your mortgage then 1 week later rates go down Am I re-able to re-lock my rate with no penalty.
Man, people sure like to spew bad information on here. Most large lenders have a rate renegotiation policy. Its not always published and its something you usually have to ask about. Lord knows I dont mention it when locking in a loan because its more trouble explaining than its worth. Short answer: if there is big enough of a rate drop, lenders will re-hedge your rate with the fed reserve and tack on a hefty fee for the process. (ours is .5pt) so basically you need rates to drop 1pt to save .5pt. If you notice the average fixed rate take a huge drop on bankrate.com give a call and see what the lender will do. The policy is in place to protect people from going and re-locking elsewhere.
so yes you can, no not for no penalty
July 29th, 2010 at 10:49 pm
No locked is locked. How would you feel if you locked in 6% and the rate climbed the next week and the Lender said lets do it again at 7%
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July 29th, 2010 at 10:56 pm
NOPE
That’s the WHOLE point of LOCKING. Didn’t you read the Lock Document you signed? READ it now. You get that rate—unless you start whole loan application over again.
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real estate investor
July 29th, 2010 at 11:04 pm
Man, people sure like to spew bad information on here. Most large lenders have a rate renegotiation policy. Its not always published and its something you usually have to ask about. Lord knows I dont mention it when locking in a loan because its more trouble explaining than its worth. Short answer: if there is big enough of a rate drop, lenders will re-hedge your rate with the fed reserve and tack on a hefty fee for the process. (ours is .5pt) so basically you need rates to drop 1pt to save .5pt. If you notice the average fixed rate take a huge drop on bankrate.com give a call and see what the lender will do. The policy is in place to protect people from going and re-locking elsewhere.
so yes you can, no not for no penalty
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have to answer this question daily, and I actually write loans for a living.