Financing in 60007>Question Details

Eviking, Home Owner in 60007

Are there new rules in place that prevent a bank/broker to re-lock a rate at a lower level as the interest rate continue to fall?

Asked by Eviking, 60007 Thu Sep 22, 2011

Is there any rules in place that prevent a bank or broker to re-lock a rate at a lower level prior to closing on the loan? My broker claims it is not possible re-lock our refinance at a lower rate within 60 days even if the rate lock has expired due to new regulations from Fannie Mae

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Shane Milne’s answer
The only regulation would be the lender's lock-in policy - after you lock in, if rates improve, some allow you to float-down your interest rate and some do not. Those that do allow you to float-down must see a pretty significant improvement in interest rates, and you do not always get to float-down to the current interest rates, it often is somewhere between where you originally locked and the current prevailing interest rates.
0 votes Thank Flag Link Thu Sep 22, 2011
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