If rates go down after we get a rate lock, can we get the lower rate?

  • August 28 2013 - Manassas
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.

 
 

Answers (9)

Profile picture for AlanGalan
Rich P,

Your example with the Apple stock does not follow with what the locking a rate.  IN a share you have already paid the money  to buy the share where as locking a rate you have not even closed on the house yet so. Loan is still floating and using that example just doesnt work.
  • January 13
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

A float down option is a legitimate item. Some lenders offer, some don't. Ask your lender and if offered, ask how it works.  Majority of them are indeed free and do float your rate down within defined time periods and interest rate "caps" of rate to float down to.

Beyond the float down option and barring extreme drop in rates during your lock period,  your lender has committed 'x' interest rate to you and you have committed to follow through with your loan at 'x' interest rate.  Think of it this way:  Would you call your broker and say, "I bought Apple stock through you at $500 / share.  It is now $490 / share,  can I get the $490 price"?
  • August 28 2013
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

usually your lender will disclose if there are relock options at the time of loan submission.  It is not common practice to leave one lender for another if you have submitted any fees, however it has been done before.  Anytime you can receive a loan at a lower finance percentage you a lot more.
  • August 28 2013
  • 1Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Hollis,

Some lenders allow you to "float down" once during the process, and typically this is in the event that your file is ready for loan papers and final signoff. There is often a fee of some sort, although some lenders can do this without charge.

Other lenders do not offer this, and in turn for you to get a lower interest rate it would require you to change lenders and break the lock.

I recommend you discuss with the current locked lender to see what they offer, and explain that if they cannot accommodate you, that they may lose the loan.
  • August 28 2013
  • 1Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

I most cases you cannot re-lock once you have selected a rate and proceeded with locking your loan anyway. This depends lender to lender.
  • August 28 2013
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for blue screen exile
"Float downs" are not "free"... they charge you extra up front for them, and when the rates drop after locking, they typically only give you about 50% of the savings.

You are better off selecting a loan officer that is good at watching rates and efficient at timely processing and closing, and have them watch the rates for you.
  • August 28 2013
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Most lenders I work with offer a free float down if rates go significantly lower, usually .5% or more. Some do not.

I agree with the post that said you have to ask your lender.

Best wishes, Jim
  • August 28 2013
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for daveskow
Depends on lender ..... Ask this question to whom you locked with
  • August 28 2013
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

No, usually once you rate lock with a mortgage lender the rate/pricing is set and will not be changed during the rate lock period. Sometimes mortgage lenders will offer a float down option which gives a cap rate/pricing and allows for a float down if rates move lower.
  • August 28 2013
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.