Okay..my husband and I called and locked in at 6.375 several days ago. However, we just received the lock-in agreement in the mail yesterday. The rates have dropped to 6.0% since we requested that float down. IS THE LOCK-IN agreement valid prior to us signing it???? We are only allowed one float down so I'm wondering if that would count as our one if we do not sign it. Don't get me wrong...we are thrilled with 6.375 but I will be kicking myself if we legally could have had 6.0%. PLEASE, let me know what you all think. I want to mention it to the lender today but I don't want to do so without some feedback. Thanks in advance.....
Call your mortgage broker and ask. Most of the time the "lock-in" paper is a formality. The lender commits to funds when you tell them you want to lock-in. Most brokers will work with you. So call them and ask. Since you can float-down once anyway, seems like you can still get the 6.0%.
We actually used our float down to get the 6.375. Our original interest rate was 7.0%(locked in back in June because we are buying new construction). THANKS SO MUCH FOR YOUR HELP!
CF, If you REALLY want the lower rate and your broker won't budge you really have one of two choices: 1. Most likely the lender will ask for an additional fee to "unlock." 2. You can withdraw your application and start again. The worst case here is you'd be out any fees you've already paid (app fee, credit report etc.). The lower rate will save you a lot of $$$ so even if its a small fee, it might be worth it.
If you withdraw your application and start again, as suggested above, you may still owe the broker fees (that is the origination fees). The broker usually earns his fee when he produces a valid committment. If you back out, you still owe, and that may be 1 or 2% of the loan amount. You need to study your contract carefully before you even think of backing out.
