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Answers (4)
- shapiroamg
- Contributions:3058
We work with a wholesale lender. when we lock a loan its locked with their investor such as BofA or GMAC. Each of these companies have their own relock policy. When a loan is locked a lender or investor has "reserved the pfunds" and when its not delivered their is a cost. Some lenders will eat the cost if minimal but most will pass on the cost. Sounds silly but it isnt and even if rates have improved there can be a cost ro relock. Im not defending the practice Im just answering the question.
- sunnyview
- Contributions:25139
A little advice-if you lock get it in writing. Having it on paper saved my bacon when rates went up during my escrow. The lender "lost" my rate lock information and told me I have locked at a higher rate than I had, but since I had a hard copy the lender has to honor the lock. Better careful than sorry.
- Upendra1781
- Contributions:2
So in this case, since it's internal, i.e I have locked with DHI, is DHI really going to lose money to re-lock at a lower rate.
Locking or re-locking the rate is just an internal process
Locking or re-locking the rate is just an internal process
- shapiroamg
- Contributions:3058
If you are dealing with a direct lender then the rate lock is between you and the company.
The Mortgage Company then can lock it with their investor, the company you may ultimately be paying. That is where renegotiating a lock may have a cost.
rate lock
If it's internal, Say I lock a rate with DHI Morgage, why does it cost DHI money to renogiciate my locked rate
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