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Replies (9)
- Maria Morton, "MariaMorton"
- Contributions:716
Once the rate is locked in, you cannot change it. The benefit is that if rates go up, you are locked in at the quoted rate. The risk is that rates could go down and you would be locked in at the quoted rate.
If you fail to close on time, you are breaching the legal contract. Google 'Breach of Contract'. Is the monthly cost of 3/8% interest worth it?
After closing, you can always try refinancing at a lower interest rate and/or with a higher credit score. You can refinance any time once you own the home.
If you fail to close on time, you are breaching the legal contract. Google 'Breach of Contract'. Is the monthly cost of 3/8% interest worth it?
After closing, you can always try refinancing at a lower interest rate and/or with a higher credit score. You can refinance any time once you own the home.
- John Dietel, "MN Broker"
- Contributions:82
Check the verbiage and time frame on your float down contract. Maybe the time has elapsed.
Your mortgage agent should be working in your best interest, and should be able to help you with that.
As far as the rest of the transaction, that would be a bother to start over, but not insurmountable.
What you may want to do is to ask for a closing date extension with the seller while you resolve your mortgage issues. Once again, your mortgage agent should be working in YOUR best interests and help you find the best deal for you.
Your mortgage agent should be working in your best interest, and should be able to help you with that.
As far as the rest of the transaction, that would be a bother to start over, but not insurmountable.
What you may want to do is to ask for a closing date extension with the seller while you resolve your mortgage issues. Once again, your mortgage agent should be working in YOUR best interests and help you find the best deal for you.
- Joe Cafiero, "Joe Cafiero"
- Contributions:3221
Maria...Did you even read the post? He is refinancing not buying the house.
o99..Your lender is the only one that can answer that. It should have been spelled out how close to closing you can float down. As for walking away nothing keeping you from doing it. Obviously will lose any fees you have already paid. Just do your homework first and make sure the grass is trully greener.
- Rudi Hofmann, "LUXURY HOME LOANS CA"
- Contributions:7435
You had a choice to continue floating your rate before locking. When you locked your loan, that was your commitment to accept financing with the locked rate, even if rates went down. Your lender committed to accepting your locked rate, even if rates went higher or guidelines changed. This is not a one-sided agreement.
When your lender offered a float-down, usually there is a fee. At that time you were probably unwilling to do this. If you do not want to honor your commitment, you would need to select another lender and start all over again.
On a refinance, if you sign all closing documents and then rescind you new loan with three days, all fees that have been paid by you must be refunded. Your mortgage professional and lender performed all their efforts for you without compensation. Is this something you would like, if this was done to you?. ... Good luck.
Happy funding, Rudi
- Norm D Plume, "America Needs Nixon!"
- Contributions:1670
it's a refinance; it can be clear to close again; just move the closing out a week or two so they can give you the floatdown they promised.
- o99ae06
- Contributions:3
Thank you all for your help. Just to clarify some of the questions...
When I asked for specifics on the one time float down I was told that this is an "unpublished" program available at a cost to me as an existing customer w/ a decent size loan. Cost being 1 pt or "pricing offered for the rate that given day". I think that means if the rate drops 3/8, I get 1/4 and the bank gets 1/8. Something like that. So I have nothing written in the contract.
I guess my questions are...
1) Typically can changes be made after "clear to close" on a refi?
2) Typically is there any legal/financial liability to walking away after "clear to close" on a refi?
- o99ae06
- Contributions:3
Norm D Plume - Is that true? That's exactly what I *want* to hear but it sounds too good to be true. Not that I don't trust you but I'm sure you understand my need to ask....
Can other folks confirm?
- Joe Cafiero, "Joe Cafiero"
- Contributions:3221
Norm is right. Question I would have is if you have nothing in writing then how do you know it is true. I know you have a previous relationship with the bank but for all we know the LO gave you a bunchof lip service hoping that rates would not drop. Also if you are paying an extra point to drop the rate a 1/4 percent, you are not really floating down. You are just getting lower rate on the old rate sheet by paying a higher origination fee / discount points.
- Rudi Hofmann, "LUXURY HOME LOANS CA"
- Contributions:7435
You are allowed to change your closing date. This may trigger another final audit to see if there are any changes in your credit profile, which may affect pricing.
Also, if your lock is about to expire you may be subject to a rate lock extension fee. Average extension fees are around 0.03% of the loan amount per day.
Happy funding, Rudi
Also, if your lock is about to expire you may be subject to a rate lock extension fee. Average extension fees are around 0.03% of the loan amount per day.
Happy funding, Rudi
Rate change after "clear to close"?
The closing on my refinance is scheduled for tomorrow morning. At one point I was offered a one time rate float down if rates fell 3/8% below my locked in rate. Well, rates have now fallen 3/8% but I was told that the change cannot be made becuase I have been "cleared to close".
Is it true that no changes can be made at this time? What's to stop me (besides the sunk costs accrued thusfar) from canceling the closing and starting the whole process over again?
What options to I have? Any and all advice is greatly appreciated.
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