Home Buying in Houston>Question Details

Ray S, Home Buyer in Houston, TX

Negotiating interest rate after rate lock ?

Asked by Ray S, Houston, TX Wed Sep 2, 2009

hii all, i am in process of buying a house. its is under construction and my closing is almost set for end of this month....I have locked my rate at 5.25 with 1.37 (30 yrs fixed loan) points with bank of america last month..since then interest rates have gone down a little bit...so can i renegotiate lower interest rate or points with bank......and also i am getting FHA loan on 4.75 interest rate with 0 points...but there is some upfront mortgage insurance of 1.75%...so should i consider that also....
thanks

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4
osipchakjohn’s answer
I would go with whoever can give me the best rate before I close the loan and if that’s not BoA then leave those SOB's for someone who is willing to give you the best deal, even if that means shelling out for another credit report and appraisal.
0 votes Thank Flag Link Wed Jun 19, 2013
Ray,

An excellent way to negotiate with the lender is to shop lenders and always have two approvals. They often fall all over themselves to win your business when they become aware of the other lender ready to step in. Also, many lenders will provide the lock with a float down feature in case rates move in your favor. This is something to ask prior to applying with competing lenders.
0 votes Thank Flag Link Mon Jul 1, 2013
I would have to agree with Cynthia about the drop down, but you may ask your lender for a reduced refinance rate in a year or so. Otherwise you can see if you do have that one time rate reduction.
Just an idea.
Let me know if you know of anyone else looking for a new home.
Would love to help them save money.
Jeff
0 votes Thank Flag Link Thu Sep 3, 2009
you can not do anything about the 1.75% mortgage insurance since you are going FHA and not putting 20% down..it has to be collected with any lender. Now on the difference with the rate lowering ..if you don't have a one time relock in your deal then no your interest rate is what it is...but remember if it went up you didn't have to go with the higher rate...but this rate is a good rate..you can refinance in the future if you want to. Good luck on the purchase and closing of your new home.

Cyn Bates
0 votes Thank Flag Link Wed Sep 2, 2009
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