the interest rate has dropped since the lock-in. The prevailing rates will apply?

NO... Once your rate is "Locked" then any rate improvement will not be passed on to you, but if the rates deteriorate, then you won't be charged for it either.. This is assuming your rate is actually "Locked"... sometimes a lender will tell you the rate was locked when in fact it wasn't.. This happens often, so you should ask your loan officer for a lock conformation and verify that the rate was actually locked... if your rate is locked and you feel there is much to gain by taking advantage of the now lower rates, you will have to have your broker "move" your loan. Meaning, it will have to be submitted to a different lender... if you stay with the existing lender and the lock expires, most lenders will not give you the better rates.. You will have to re lock at "Worst case scenario"... it's a lot of work to move a loan and it's time consuming.. For your lender it's like doing 2 loans for the price of one, so expect some resistance.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

In most scenarios as others have stated, once you have requested your interest rate to be locked you are locked. The only exceptions to this rule is if you were dealing directly with a bank that portfolios their loans and disclosed to you the float-down option. In that scenario, it is usually a one-time occurrence with a specified surcharge to float-down your locked-in rate to the prevailing market rate.

No! Your lender will have to relock or extend the loan. Most rate locks extend the lock based on the following: You will be relocked at the higher of either the rate you locked at or the current prevailing interest rate. Some banks may extend the current rate for a fee. Unless you purchased a float down option, you will not get less than the rate you originally locked for. Some bankes will allow your mortgage originator to re-negoitate the rate if the rate has dropped more than 3/8. Your rate lock agreement disclosure, which you signed, should clearly provide you details and terms of the rate lock. John Schlobohm Mortgage Planning Specialist. 914-433-4646

Once you "Lock" a rate, the rate is LOCKED. This means the rate does not go up or down. When you lock, the risk you take is that you no longer benefit from changes in the market the allow rates to move lower. BUT you accept this risk to avoid the risk that market pressure will drive your rates higher. Unfortunately, you can't have it both ways. ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ www.LoansA2z.com 888-889-9950

Once it is locked it is locked. It will not change.