Unfortunately the only way that you will be able to get the lower rate is if your lender will switch the bank that is underwriting your loan. They will most likely not do this because it will cost you another appraisal and start the entire process all over again. You can switch lenders yourself if you think you can get a lower rate with lower fees, but you will have to pay for another appraisal and start the process over. The other option that you have is to pay the lender the cost to them to lower the rate. Please feel free to call me if you have questions.
You locked into a great rate! Once you lock, you are protected from the the rise interest rates & you forego your ability to ride the market in search of a lower rate. We all want the lowest rate possible, that is understood, but once you lock a rate, those funds are actually reserved for you, based on the "rental" price at the time you locked that rate.
One way to look at this is, with rates so low, your downside potential of rates increasing, is much greater than the rates decreasing; this is an insurance policy for you. Now, you see that the rate dropped 1/8 (0.125%) of a point, when you "dollarize" that decrease, how much more would you have saved in interest on a monthly basis?
Now, if rates increased by 0.375%, how much would you have lost by the increased payment when you dollarize that number?
A bird in the hand...
All the best,
Roswell Moore, CMPS
Certified Mortgage Planner
We are a Direct Lender, Mortgage Bank where we originate, process, underwrite, fund, AND SERVICE our loans, in-house, with FHA (starting at a 580 score AND still only 3.5% down), FHA Streamline loans (NO minimum credit score, NO appraisal required) Go Green rehab loans, HomePath, Investor Friendly (10 financed properties), VA, USDA, Jumbo, Conventional, plus, we allow Escrow HoldBacks! NMLS ID 263779 | AZ BK 359295
I see it as fine as I paid a price to lock in. I just wanted to be aware if that is possible easily from well informed and knowledgeable community.
I appreciate everyone's response and time, however trivial my question might have looked.
I have got my answer
You had a choice to lock in or float. You chose to lock in. Frankly, I'd probably have done the same. It wasn't a bad decision.
And according to my calculator, the difference in your payment will be $9 a month. That's not a big deal.
Live with it. Be happy that you got an incredibly good interest rate.
You can't have it both ways, a lock is a 2 way street. Greed is bad.
Besides, it's highly doubtful that they would have it for 2.5% with exactly the same fees as 2.625%. That would have required a huge move in rates and that just didn't happen; especially for ARMs.