Mortgage question

[ragazzo]

Last month, I locked in at 5.5 and the closing on the home is at end of this month. However, I just checked the rates and they are going for around 5.0.

My lender said that we can't get out of this. Is he just saying that to, or is it legally binding once we've submitted our application? Thanks.

 

[Splork]

I'm not a mortgage broker, but once you're locked in I don't think you can change it. That's the whole point of locking in so that if the price does change it won't effect you. You might ask him if you can scrap that application and start over, however, you might have to resubmit all that information, plus it will be another hit on your credit score.

-sp

 

[olds]

What's the difference in the two payments?

 

[dirtboy]

You can get out by paying a penalty. That is the risk you take when locking in rates. If rates go up, you win. If they go down, you lose. Want out, reach into your pocket!

 

[LuckyTaxi]

Originally posted by: ragazzo
Last month, I locked in at 5.5 and the closing on the home is at end of this month. However, I just checked the rates and they are going for around 5.0.

My lender said that we can't get out of this. Is he just saying that to, or is it legally binding once we've submitted our application? Thanks.

We're did you get that rate?! Sheesh, I've been quoted a 7.5.

 

[PetunZ]

Some banks allow you to change the rate for a certain fee. Two months ago I locked in at 6.00% and the following week the rate lowered to 5.75%, and I had to pay about 2K in fees to get it to 5.75%. Then my loan officer refunded me the fee at the end

 

[olds]

Originally posted by: lilcam

Originally posted by: ragazzo
Last month, I locked in at 5.5 and the closing on the home is at end of this month. However, I just checked the rates and they are going for around 5.0.

My lender said that we can't get out of this. Is he just saying that to, or is it legally binding once we've submitted our application? Thanks.

We're did you get that rate?! Sheesh, I've been quoted a 7.5.

We just got 5.5