Interest Rate

It's certainly possible, but not the best thing to do. A lock, while not a formal contract, is a 2 way agreement between you and your lender. They agree not to raise your rates if they go higher, and you agree to close at the rate you locked. Breaking locks has a real effect on loan officers and could damage their relationship with their investors. The first thing you should do is speak to your loan officer and see if there is a solution. Everyone wants the lowest rates, but it was your decision to lock after-all. I'm sure you would not accept it if the lender attempted to raise the rates right at closing citing market changes; you really should honor your commitment.I'm sure you will here differently from others saying that you can always switch lenders and relock somewhere else. While that may be true, I find that practice to be just as unethical as if a lender broke a lock at closing and raised your rate. Should you decide to break your lock and take your business elsewhere, be on notice that you have forfeited your moral right to be upset should the new lender do to you, exactly what you did to someone else, and that is to decide to cash in on rates that are more favorable as they come.Yes, you can break the lock, it's not a question of can you ... but should you.

My first question would be why would you want to break the lock in the first place. Is this a purchase or refinance? It is true you could break the lock and take your business elsewhere but I would ask WHY? If it is for a mere savings in the rate of say less than 1/4 percent, you would incur new costs with the new lender and also create a sticky situation with trying to get your current loan officer to transfer the appraisal. If the rate is truly a concern, first speak to your loan officer and explain your feelings and get his/hers thoughts first and then make a sound decision. Remember, if you start the process all over again, you may miss important deadlines if this is a purchase and may subject yourself to another months mortgage payment if this is a refinance. Hope this helps. Email me with any additional questions.