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Rate Lock and Change

Hi,
I locked my rate with a lender for refinancing yesterday (have not signed any disclosures or anything yet). The rate today is a little lower, can I call my lender and ask him to make adjustment or its a done deal for now?
Regards,
  • September 24 2013 - US
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Answers (6)

Profile picture for Brookstone Mortgage
If they go down a little tomorrow will you ask again for another change?

PS, float downs are usually only offered when there is a considerable change in rate, such as .25 to the actual rate rate. That's a BIG jump and you are nowhere near that. Beware of those saying they can do float downs, most of them don't truly understand the requirements to get one if they are truly offered.

My advice, be happy with what you locked and stop tracking rates. What was good enough yesterday should still be good enough today. 
  • September 25 2013
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This really depends on your lender. Some lenders will allow you to lower your rate one time before they finally lock it for good. Some other lenders won't even allow that at all. I recommend you speak with you lender to see if anything could be done.

Well I hope this helps! If you have any further questions or if you would like a loan, feel free to contact me!

Good Luck!
  • September 25 2013
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There are some lenders that allow a one-time float down option, but it is not offered by all of them. The lender usually offers this once you are ready for loan papers to be ready for signature, and they only offer this if you are committed to closing the loan.

Rates change every day, and the lender will expect you to close for them since they have "frozen" this loan amount of cash for you. This produces considerable cost for the lender, which is why the float down is a one time offer.

Good luck!
  • September 24 2013
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The key term here is a "little" lower. They didn't drop that much today. Assuming you made an educated decision yesterday, you need to understand that had they gone UP, you would be mighty happy right now. Rates change every day, sometimes more frequently and it's difficult to predict each day in advance.
  • September 24 2013
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Unfortunately with most lenders once its locked it would stay that way.  There are some lenders that would have float down policy but it is not very common any more. That is where once your locked you are able to get a lower rate if they go down for a little extra cost.  Check with your loan officer and see what they can do.  They would be your best resource for this question.
  • September 24 2013
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Contact your lender but just to let you know that the market is better today however it doesn't necessarily mean you qualify for a better rate. Maybe if there are fees involved tey may go down but definately contact your lender. Typically once you lock in you can not adjust the rate up or down hense the reason for locking in.

Again contact your lender maybe they can do something for you in the way of a lender credit or something but I don't want to speak for them. Most of us are on comission so we want to earn your business so i am sure the will do something for you.

Good Luck!

  • September 24 2013
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