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When you're already locked in on a rate & the rate drops, can I get that lower rate. 10days to close

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November 08 - US
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Profile picture for 203K Specialist
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Since January 2009

The only way you could is if you had been willing to allow your rate to go up if they had gone in the other direction.  That would mean that you opted to float your rate rather than lock.

Once you choose to lock your rate...your rate should not go up or down.  The only time that can happen is if assumptions change.  Property value drops, the lender needs to re-pull credit and your credit score has dropped.
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November 08
Profile picture for SunTrust
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Since May 2009

but you don't need to close if you've found a better rate, no you sure don't.

Can we get feedback on this one from some of the other real estate agents?
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November 09
Profile picture for shapiroamg
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Actually, YES YOU CAN get a lower rate even if it's locked.  It depends on whom is doing the loan, but if your working with a mortgage broker, they can lock your loan somewhere else. 

Please enlighten us Lynn with how this can be done in this age of HVCC. There are less than 10 days here.
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November 09
Profile picture for wrightlynne
Real Estate Agent
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Actually, YES YOU CAN get a lower rate even if it's locked.  It depends on whom is doing the loan, but if your working with a mortgage broker, they can lock your loan somewhere else.  Your welcome to call me about that, but you don't need to close if you've found a better rate, no you sure don't.  19 Years experience in Real Estate, and Lending Lynne 303-875-3526
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November 09
Profile picture for lifebeyondEarth
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Since November 2009

Trisha,

Go ahead and get GFE and send it to your lender/broker. If its substential difference in Rate and monthly payment than you can simply leave the lock money on the table and move on with next lender. Unless you are in a situation that closing date can't move.

Most of the time rates under .125 of difference doesn't make a huge difference in montly payments, it may be worth looking at it if you breakeven in 1.5 years with the money you loose to the difference you save in 18 months.

Your lender/broker aren't loosing anything, but they should work as much harder as much you do to pay your mortgage. Don't give them a free pass.
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November 09
Profile picture for SunTrust
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Since May 2009

other than 8th Oct when rates took a 1-2 day dip, they've been pretty flat the last month.

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November 08
Profile picture for CA UMB
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Since January 2009

Trisha,

It wasn't sacasim. It was a question which I attempted to explain in more detail. I'm sorry my free service was not to your liking.
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November 08
Profile picture for trisha128
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Thanks for your replies!

What part of that did you not understand?

Mr. Hofmann: next time you reply to a question, maybe you can omit the sarcasm.

I would have not asked the question if I totally understood now would I.
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November 08
Profile picture for daveskow
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Since October 2009

no......
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November 08
Profile picture for CA UMB
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Since January 2009

A rate lock is a commitment between you and the lender. The lender commited that even if rates went up they would honor the locked rate.

You made a commitment that even if the rates went down you would honor the locked rate.

What part of that did you not uunderstand?

When you locked and you had a concern that rates may go down your broker could have placed your loan with someone like Wells Fargo with a float-down policy for a half point. If rates went down by a minimum of 0.25% you would receive the lower rate. And, WF rates are higher than what many brokers can receive from other lenders.

0.25% is a big adjustment. It's like Las Vegas. The odds are in favor of the "house." Usually, this is a waste of money. It's an expensive insurance policy.

Some lenders will say they offer a free float down. Compare their rates and/or fees. Lenders are in the business of lending, nothing is free.
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November 08
 

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