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Change the Rate after Locking?

Hi,
One the day that I locked my rate, I was given 3 options ie 4.375 with 0.5% lender credit, 4.625 with 1.25% lender credit and 4.75 and 1.75% lender credit. I chose the 3rd option. Can I go back and ask the lender to change the rate? 

I have heard that I can jump onto any rate that was offered to me on that day, it might have to go through underwriting again. Is that true?

Regards,
  • August 19 2013 - US
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Answers (9)

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Yes I was able to change the rate to the ones available for my loan type.

One cannot jump from a conventional rate to an arm etc.
  • August 27 2013
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From my experience in CT, the mortgage lenders will allow you to adjust the rate, up or down, with the corresponding pricing associated with each available rate for that day.  Usually, underwriting will have to re-review the changes as the updated pricing can mean more or less cash and the final rate would change, which if higher, would mean a higher debt to income for qualifying ppurposes.

  • August 27 2013
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Andrew is right, every lender has different rules. Ask you loan officer if they are able to do that, and what all of the caveats are
  • August 20 2013
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It has been my experience that most lenders will allow you to switch that rate around following the rate sheet on the day you locked. The loan will most likely have to go through underwriting again--but that shouldn't take long. Most lenders aren't too busy with higher rates. 
  • August 20 2013
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Good morning,

The purpose of a rate lock is exactly that: to lock the rate on that day under the market conditions on the day of the lock.  It is unlikely your Lender will let you out of the lock.

Considering the volatility of rates of late, you are probably best keeping your lock as rates have increased dramatically.  Again.

Your Loan Originator is your best guidance in this matter as she will be familiar with her company policies on locks in general and current rate trends in particular.

Trevor Curran
NMLS #40140
  • August 20 2013
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In addition to this question, ask your lender if they allow you to come down to a lower rate offered at any time before you close as well.  Having the ability to "float it down" is a great option when locking in your rate during a volatile period in the market.
  • August 20 2013
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I would be surprised if your lender could not change to a lower rate/lower credit based on the same day pricing. Your debt ratio can only go down so UW shouldn't be an issue if you have sourced and seasoned assets to make up the difference. When you ask be sure they understand you are not trying to renegotiate pricing, only change to a lower rate / lower lender credit based on that days pricing.      
  • August 20 2013
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As per my knowledge, there are many lenders who do follow renegotiation policy. So I would advise you to ask your lender and negotiate to change the rate.  I think they would agree with it as they will try to retain the business. 

  • August 20 2013
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Ask your loan officer, they will be the only ones that can tell you what they can or can't do.
  • August 19 2013
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