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What options are there if you locked your mortgage interest rate and the rate has dropped

By soccerloverhank625 from CA Feb 3rd 2014

Hello Hank,Few options may be available but alot has to be taken into consideration for any of the options to be viable for you. First question is, what is the rate that you have been locked at and what is the current available interest rate to you? 1) are you working with a Broker or a National Lender? 3) when will your lock expire?

Feb 3rd 2014

Ask your lender if they have a "Float Down" option. Letting your lock expire will generally not work as most lenders have a policy whereby it has to be expired at least 30 days before you can take advantage of current rates. However, some of us have other options to work with in this area. I'm happy to help with the financing or just give you advice. If you need more information, or a competing rate quote call, email or use my live support button to discuss or get in touch with me. Web Address is: http://www.loansfromrob.com/quote/ Email is robertlh66@verizon.net and direct phone is 240-752-7549. Good Luck -- Rob Hanson

Feb 3rd 2014

This will vary from lender to lender. With most lenders, once you have locked, that is the rate for better or worse. Some lenders will allow a float down on every file one time. In my opinion, if this is offered, you were probably paying too much in the first place because they have the cushion to allow you to pay less. Still other lenders will meet you in the middle if rates have drastically dropped, essentially taking a pay cut to keep the loan with them and closing. Best choice is to call the lender you have locked with.

Feb 3rd 2014

Ask your lender if the rate lock came with a float down option. A float down option will allow you to move to a lower rate once before your loan closes if a lower rate before available. Call your current lender and see what options they have available for your situation.

Feb 3rd 2014

If you are doing your loan through a lender you really don't have an option with that lender. If you are using a broker, it would be unethical for the broker to take you to another wholesale source. I wouldn't trust any broker that would do this. However if the broker has a good relationship with the wholesale lender the broker should have been able to get the lender to reduce the rate for you. If the broker does not have the ability to do this find a new broker that has this ability. scottpwmson@gmail.com

Feb 3rd 2014

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