Home Buying in Charlotte>Question Details

Delete Accou…, Other/Just Looking in Conetoe, NC

Can anyone tell me if you "lock-in" a rate can you unlock and re-lock or do you have to go through a different lender to obtain lower rate lock?

Asked by Delete Account, Conetoe, NC Wed Jul 17, 2013

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You cannot unlock a rate without paying an often significant sum of money, though there are a number of lenders who if the rate drops 1/4 or a percent or more will give you the new lower rate, you would need to ask your lender.

Too often buyers are rate obsessed and don't understand that there is more than just rate to consider when evaluating loan offers. Any lender can give you a better rate it called buying the rate down, however with 35 years of experience and having bought and sold dozens of homes fro myself I do not ever advise anyone to buy their rate down.

Changing lenders is likely to cost you as much or more than you are likely to save with a slightly lower rate and may cause delays in closing depending on how much time there is to the close date. While many buyers may not believe it, the truth is statistically it's highly unlikely that you will be in the home you're buying more than 4-7 years so a 1/4% difference in interest rate doesn't amount to a whole lot of money. I don't have all he information necessary to help you evaluate whether it makes financial sense or not to change lenders but you should be able to have your buyer broker assist you with this.

Good Luck and I hope you enjoy your new home.
0 votes Thank Flag Link Thu Jul 18, 2013

on the interest rate lock you should be able to unlock it and re lock it. It may be up to the individual lender if they allow tat or not. However; just because you locked in an interest rate does not obligate you to use them for the loan. It just means you are protected from the rates rising any higher than the lock rate you have.

I would check with your lender to see what their policy is though before going around and checking the interest rate.

Dave diCecco
Coldwell Banker United
0 votes Thank Flag Link Thu Jul 18, 2013
Hi Janelle
The rate lock is just so if rates would rise your rate will not. If rates were to drop and you are locked in you should be able to get the lower rate without having to go somewhere else or start the process over. Hope this helps.
0 votes Thank Flag Link Wed Jul 17, 2013
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