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My loan was just locked at 3.65 but I see rates are getting lower. What can I do?

by vincentb67 from Tallahassee, Florida. Apr 5th 2013 Reply


Barb Lanis (BarbLanis)
#69 ranked lender in Illinois - 679 contributions

Interest rate markets change every day and that's the risk. You decided to take yourself out of the Las Vegas-style rate roller coaster when making the decision to lock. The good thing about locks are that they are just that - Locks. So if the rates had gone up, you would have been protected and laughing all the way to closing. Make certain you evaluate the actual payment difference (also long-term costs) vs. bailing and starting over with another lender. Will that new lender offer the same level of service? Will they be able to close on time? Does the new lender have experience? Sometimes the numbers don't make much of a difference and you're better off to stick with what you have.

Apr 5th 2013
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Brian Striegold (BrianNRL)
#163 ranked lender in Texas - 22 contributions

We are closing loan in 2 weeks and can definitely beat that rate! Call us at 281-833-9424....Thanks

Apr 5th 2013
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Dave Metsker (DaveMetsker)
#36 ranked lender in Oregon - 2,318 contributions

Talk to your lender. Your closing costs may be higher for a lower rate.

Apr 5th 2013
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Charlie Sparks (CharlieSparks)
#8 ranked lender in New Mexico - 401 contributions

How would you feel if rates were higher and your lender called you to say you need to take the higher rate? A lock is a commitment for all parties and locking when rates are lowest is purely chance. If they improved by .25% since you locked it would only mean a few dollars/month. If you are closing in 2 weeks it would be a mistake to start over with a new lender. Besides, 3.65% is a phenomenal rate. I recommend staying with what you have.

Apr 5th 2013
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Kiernan Brown (KiernanBrown)
#50 ranked lender in Michigan - 149 contributions

Are you certain your loan is locked? I would talk to your current lender to see. A number of lenders are not locking loans as soon as they used to. Saving .125% in rate may not be worth the additional time or cost needed to reprocess with another lender. Per BankRate.com average rate is just 3.59% and this depends on your situation and current costs.

Apr 5th 2013
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Michelle Curtis Loan Originator NMLS 401173 (MichelleCurtisLO)
#77 ranked lender in Florida - 2,245 contributions

The only thing that can be done is start over with another lender or see what your current lenders policy is.

Apr 5th 2013
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Carlo Sanchez (MortgageLendingPro)
#0 ranked lender in Utah - 1,163 contributions

How do you know you can do anything at all? Yeah, everyone is giving you advice but they don't know your SPECIFIC Situation. I don't know your situation but can tell you that if you were doing an FHA streamline, on an Investment property, with a loan amount of $75K, and weren't bringing any money to close, you would be getting a SWEET deal!! Bottom line is your situation may call for that to be the best rate you can get anyway. You can wait till the lock expires OR start with another lender but if the rates go up ,by the time then can actually lock the rate then you just gambled and LOST!! You have a 66% chance of losing if you change lenders AND bonds went up today which means rates stand a good chance of going up on Monday.

Apr 5th 2013
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James Barath (JamesBarath)
#9 ranked lender in Indiana - 352 contributions

Mortgage rates are in constant fluctuation throughout the day. Since you agreed to lock your loan, you opted to remove all risk of the volatility of the mortgage bond market. Stay focused on the approval in-hand and don't chase interest rates. Otherwise, you could jeopardize your ability to get your refinance completed. Have a great weekend.

Apr 5th 2013
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James Mazzola (Mazzola)
#110 ranked lender in New Jersey - 314 contributions

Some lenders offer re-locks. But Rates change. Be careful. They can go up fast too

Apr 6th 2013
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Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 4,703 contributions

Nothing... The rate is locked. You've made a mutual commitment with the lender. Homeowners always look at this one side. "What if rates go down?" But "what if rates go up?" You are always happy the lender can't raise your rate if rates go up. Now, contrary to popular belief, the lender isn't making anymore or any less if rates move. Our margins are the same... Finally, a 3.625% rate is awesome. Be happy you got that, and don't be concerned about chasing anything lower.

Apr 6th 2013
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Raymond Denton (Raymond)
#11 ranked lender in Ohio - 224 contributions

Some Lender, Prime Lending for example, offer interest rate float downs at no cost to the borrower when they lock their loan. Ask you Loan Officer if they offer a similar program. With Prime Lending, you're protected up to 3/8%

Apr 6th 2013
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Carlos Figueira (carlosfigueira)
#108 ranked lender in New Jersey - 199 contributions

Agree with all, CHECK if you have a float down option on your lock......I assume you don't as your loan officer would have discussed this with you but doesn't hurt to check.

Apr 6th 2013
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Peter Botros (PeterBotros)
#70 ranked lender in New York - 895 contributions

agree with most posts.

Apr 6th 2013
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Private Money / Commercial Money LendingWaikoloa, Hawaii 96738Office Phone: 808-883-2747E-mail: J@KalaLending.comBusiness Description: We offer multiple types of funding starting at $100,000 and up, no maximum: * Commercial Real Estate Loans * Bridge Loans * Multi-Family * Office Buildings * Industrial * *Hotel / Motel Financing * Medical * Assisted/Independent Living * Warehouses * Franchises * Convenience Stores *Restaurants * Project Finance * New Construction * Equipment Leasing * Stock Loans * Portfolio Liquidations * Private Equity * Joint Ventures *Working Capital * Project Finance *Oil and Gas Financing *Renewable Energy Financing * Gold Mines *Churches*Credit Lines *Proof of Funds *Bank Instruments * Bulk REO's * NPN's/PN's

Apr 9th 2013
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Craig Prickett (cpmtgnow)
#160 ranked lender in Florida - 98 contributions

relock or call me 954 558 4430 Craig www.firstfloridafin.com

Apr 11th 2013
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