Unfortuantely, unless u have locked in the last two days, rates have gone up a bit. But that's all a part of the process.
Francesca Patrizio, Broker Sales Associate, ePro, SRES
I don't know what all the hubbub is about. You would get the lower rate either way since your lock expires, the mortgage company will not want to lose your business and will give you the rate.
I would not advise that you start the process with another lender as you will have to jump through too many hoops to make this work.. Appraisal, paperwork, I canâ€™t imagine going through all of this again especially in todays market.
Speak with your lender, there should be no reason that they will not give you the lower rate since they will not want to lose your business, remember you are in the drivers seat here. If you are uncomfortable.. Lock in at the lower rates that are currently available to you. If your lender looks to charge you for locking at the new rate (which they should not) Then send the bill to the seller of the house. Let the seller pay for it.
I can help you with this. The rates today are at 3.75% on a 30 year fixed FHA loan. Please understand that rates move up and down just like a stock moves up and down. The rates quoted,if not locked can change daily. If your Lender won't "float down"the rate, it might be benificial to move the loan elsewhere.
A monthly payment on $400,000 is $1967.76 at 4.25%.
At 3.75% it's $1852.46 a month. This savings equates to $115.30 a month. Over the life of the loan it's a $41,508 savings. 360(30 years) X 115.30= $41508.00
If your loan is much higher than $400,000 these amounts would be more of a savings.
Please feel free to call me at 201.638.5498 to ask me any questions.
Since it costs nothing to apply to more than one mortgage company, it might be smart to have a plan B in place, because even if the lender does agree to float the rate, it is usually done at a cost..... 1/8 to 1/4 % per week extended is not uncommon, and you don't know exactly how many weeks until closing.
Be smart and lock in a plan "B" so these delays will not cost you over the next 30 years. If you want to call the mortgage rep I usually recommend, his name is Angelo and he is very honest and pleasant to work with...his number is 201-638-5498.
Best of Luck!
Just had the same situation wherein the rate lock expired before closing and the finance gal gave my client the new lower rate. Hey, if you can't close, you can't close. I think it's a bit more paperwork for them, but it's better than lthem osing the deal.
Francesca Patrizio, Broker Sales Assoicate, ePro, SRES
Gloria Nilson REALTORS, Real Living
A 3.75% 30-year fixed interest rate with the only APR affecting fees being the 1% UFMIP + you are starting at 78% LTV so the MI is only paid for 5 years... it still comes out to a 4.289% APR.
Are you absolutely sure the APR is 3.935%?
Jane is correct though that your lender may offer you a "float down" option, where you can lower your interest rate, but it will be somewhere between where you locked in and the current interest rate - you won't automatically get the current prevailing interest rates. When you lock in your loan you protect yourself from interest rates increasing, but do not automatically get a lower rates if rates get lower - otherwise everyone would be dumb not to lock in their interest rate at application.
With nearly all lenders, after your rate has expired for 30 days (so it expires, and an entire 30 day elapses) then you would be able to get the current prevailing interest rates without having to meet "half way", etc... but you also run the risk the entire time of interest rates moving up higher, perhaps even to the point above where you initially locked in your interest rate, and locking in any time prior to the full 30 days past your expiration date would result in the worst case situation between when you originally locked and the current prevailing rates.
Who is not to say you make a switch to a new lender, everything is finally transferred over and in the short period of time that takes, but interest rates have moved up to near where you currently are at? I hope you realize they fell nearly .375% within a matter of 2 days. Or for one reason or another the new underwriter has an issue with your file and now you are holding up the closing because you may have to jump through some additional hoops with the new lender and/or have to find yet another new lender (or go back to your original lender with hat in hand)?
Also, Angelo Lefer @ 201-638-5498, please read http://www.bankersonline.com/marketing/gc_loanadvertising.pdf http://www.bankersonline.com/regs/226/226-24.html & http://www.fdic.gov/regulations/laws/rules/6500-1600.html#fd - promoting an interest rate to consumers without disclosing it as an APR is a violation of Regulation Z. I would have contacted you privately about this, but you listed no contact information.
Closing has been held up due to sellers issues - they needed to get permits for previous work done to the house. Everything on our side/loan process/approval has been timely, so there hasn't been any hold up there. The sellers finally obtained town approvals as of this past Friday, but we're not going to close for another week or two due to logistics (getting around our work schedules) and we're also in the middle of asking the sellers for repairs we found necessary on a recent walk through, so that looks like it may cause a delay as well.
Just a couple of missing tidbits in your question, the type of loan, loan amount, credit scores, LTV all of which can impact the interest rate. It doesnâ€™t matter if the interest rate is zero percent if the loan doesnâ€™t close!!! Hope this is helpful,
If you opted to lock in a rate and you already have a loan commitment you are probably going to be staying at 4.25% which is still a very good rate. You can ask your loan officer if he can do anything to lower the rate to the prevailing rate but they are not obligated to do so.