Refinance - locked rates and now rates have dropped

[Anonymous]

When you lock an interest rate and then rates drop, is there typically a way to switch to the lower rate - I.e. by paying a fee? It seems I could just switch to a different company and start the process over to get market rates, but I don't really want to do that. But I understand that if rates had gone up I would expect them to honor the lock so I need to do the same, but since I plan to keep this mortgage for a long time I'd like to get the lowest rate possible. How does this usually work? Also, my rate lock expires next week. If they do not close by then, does my loan revert to market rates?

[Anonymous]

Tell them you want to drop if they say no go with someone else if you already paid for appraisal you can take that appraisal to anew broker

[Anonymous]

Yeah, just because they locked doesn't mean you did. Did you sign any contract that binds you? Switch if they won't drop.

[Anonymous]

I did this. Loan rep #1 said "you will loose your 500 application fee" and I said "but I"ll save 20K over the life of the loan and 1400 at closing so why won't you meet the new rate". She asked her boss, he refused and they lost that loan. Unless you've closed, ask them for the lower rate and if they don't, get a new loan. Realtors HATE this b/c it puts closing at risk or for a push but do it. It's your personal financial decision and it's a good one.

[Anonymous]

Anonymous wrote:Tell them you want to drop if they say no go with someone else if you already paid for appraisal you can take that appraisal to anew broker

I did this and I COULD NOT take my appraisal to the other lender. The original lender owns that appraisal.

[Anonymous]

My rate had a flow down, so if rates dropped a 1/4 of a point before settlement, I would get that rate. No flow up, just down.

[Anonymous]

Anonymous wrote:My rate had a flow down, so if rates dropped a 1/4 of a point before settlement, I would get that rate. No flow up, just down.

I believe this is common, OP. You can't get them to match every single new rate, but something like 1/4 or 1/2 justifies an update.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Tell them you want to drop if they say no go with someone else if you already paid for appraisal you can take that appraisal to anew broker

I did this and I COULD NOT take my appraisal to the other lender. The original lender owns that appraisal.

I have taken my appraisals to a different lender the lender may release the appraisal to you

[Anonymous]

My original lender was naturally displeased and did not release my appraisal to me.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Tell them you want to drop if they say no go with someone else if you already paid for appraisal you can take that appraisal to anew broker

I did this and I COULD NOT take my appraisal to the other lender. The original lender owns that appraisal.

I have taken my appraisals to a different lender the lender may release the appraisal to you

Did you have FHA loan? you can take appraisal to other lender for FHA, but not conventional loans AFAIK

[Anonymous]

Lending laws have changed and you can no longer take an appraisal with you. Talk with your loan officer and ask them about a float down. See if you can get it for free at first. If not, see if the expense makes sense given the potential savings. A good loan officer can break this expense down for you. Before you consider pulling the loan and changing lenders, keep in mind that if you miss the settlement date because you changed lenders that you may be considered in default and your escrow deposit could be at risk. Remember, you did choose to lock your rate and once you do, those funds are tied up with the lender. As I tell my clients, once you ratify a contract, its rate roulette.

[Anonymous]

OP here. Thanks for the responses. To clarify, this is a refi, not purchase, and all I have paid is the appraisal fee. I'll ask about a float down.