Ask Kate about locking mortgage rates! You are invited to browse through my collection of thought-provoking questions from borrowers regarding their lock-in struggles with cancellation fees, re-locking, float down policies, expiration dates, extensions, lock policies, broken lock agreements, lender stall tactics, closing costs, and Loan Estimate forms.
I'm Kate, creator, author, and publisher of Get Your Best Mortgage Rate. I will be your guide.
To say I am passionate about locking rates would be an understatement!
I remember the energy and attention to detail during my 20 years as a mortgage lender. I developed a reputation for closing loans before my borrowers' locks expired. Now I'm passing on my expertise to you!
But before you dive into the letters, I want you to know you can also ask Kate a question about anything related to mortgage financing, or add a comment to the following questions and answers.
Let's get started...
Mortgage Broker Threatens Home Buyer with Massive Loan Cancellation Fee - After ignoring Sean's 7 requests to lock an interest rate, the mortgage broker locked but with $30,000 in closing costs! Now broker is threatening to sue for $15,000 in cancellation fees. Shameful!
Learn to Compare Mortgage Rate Lock Offers - Lenders look for an interest rate that yields the most on a given day. Depending on the yield, they can credit a borrower's closing costs and still turn a profit. Learn how to determine if their offer is beneficial to you.
Why Verbal Mortgage Rate Locks Are Worthless - I was NEVER presented with a rate lock form and yet I was charged $1,600 at the closing for it. Can I now confront the lender for a lock rate fee I never agreed to?
Can Appraisals That Come In Higher Decrease Locked-In Mortgage Rates - Shannon's refinance appraisal came back higher at $330,000. Can this value lower the interest rate? Janice's mortgage lender states there are no do-overs in loan modification. What are her options?
Can I Get a Lower Mortgage Rate When Lock Expires - Amy was not offered a lower mortgage rate as her lock was about to expire, even though the rates had improved. Jodi wants to refinance her husband's mortgage, remove his name, and add hers since she is already on the title.
Good Faith Estimate and Mortgage Rate Lock Agreement at Closing - Jen is in the closing stage and has been told that her rate was not locked at the price she was quoted. Now she must pay $2000 to keep the 3.8%. Is this legal, she asks me.
Mortgage Lender Raises Rate After Homeowner Locks - Erika's lender is suddenly charging an additional $3400 to preserve her already locked-in interest rate! Can the bank do this? Mari wonders how much it will cost to cancel her written rate lock agreement.
Mortgage Rate Lock Extensions and Float-Downs - Steve needs to extend his locked rate for another month. He asks me how to prepare for his call to the lender. Linda asks why her mortgage lender does not allow borrowers to lock an interest rate until after appraisals are finished.
4 Expiration Dates to Guard Including Mortgage Rate Lock - The bank says my son needs another extension for the lock-in rate. Should the sellers be responsible for the extension fee? What should we do? His Lawyer isn't the sharpest crayon in the box.
Switch Lenders After Mortgage Rate Lock Expiration - I am a first time home buyer and the bank has really put me through the wringer. The bank says I will have to extend the lock at a cost to me, and that I cannot just allow it to expire and then reapply for the loan. Is this true?
How to Protect Your Locked Mortgage Rate - Ernestine trusted the mortgage company to follow her verbal instructions to lock in her rate. Now the loan officer won't return her calls. Allen's mortgage rate is locked in writing at 2.875%. But with his bank stalling, he's concerned that his low interest rate is in jeopardy.
Slippery Mortgage Interest Rates and Your Lender - New! Sources of authority for borrowers with failed lock-ins. Murky practices are still causing grief. Meet Harry who suspects his lender is stalling until his rate lock expires. Then there's a home buyer who lost his locked interest rate after getting faulty information.
Elusive Mortgage Rate Lock Guarantee - You can bet your bottom-dollar as soon as interest rates begin to climb, lock-ins get dicey. In the case of home buyer Maxine, the increase in rates makes the lender's lack of guarantee more painful. In the case of not locking rates, there is no excuse for this lender behavior!
Mortgage Rate Lock Agreement Fine Print - After locking in Paula's interest rate, she's notified that her lender is re-locking a higher rate after reviewing the initial credit report. Then the loan originator begins threatening her with collections when Paula asks about cancelling the loan application. What is Paula's recourse?
Mortgage Rate Lock Advice for First Time Home Buyer - Rita was let down when she tried to negotiate lower interest rates. The banker agreed but conditioned negotiations on the flow of the market! What kind of a negotation is that! Later when Rita received a Good Faith Estimate in the mail, the wrong rates and fees were blamed on the computer!
Broken Mortgage Rate Lock Agreement and Good Faith Estimate of Closing Costs - Roger locked his interest rate over the phone with his broker. Then requested faxes of his Good Faith Estimate and Mortgage Rate Lock Agreement. But the paperwork he received belonged to another homeowner. Now he's lost his lock!
Can Mortgage Brokers Lock in My Mortgage Rate - Mary didn't know she was using a mortgage broker. Now she's wondering if she should be using a direct lender because she can't get her broker to lock in her rate. In the meanwhile, she's afraid that interest rates could soar and she won't be able to refi.
Mortgage Closing Costs, Rate Lock Policies, and Yield Spread Premiums are joined at the hip in your home loan process. Will you be required to pay rate lock fees if you cancel your refinance? What about yield spread premiums? If you don't understand your Good Faith Estimate, it could cost you big-time!
New Good Faith Estimate Form and RESPA Rule - What fees on the back end should I be concerned about? My mortgage broker isn't charging points or origination fees. Does that mean they be inflated some other way?
Mortgage Rate Lock Talk - Float downs, extensions, and broken locks: You should not have to anguish over locking your mortgage rate! But know this, success in locking mortgage rates depends on choosing capable and conscientious mortgage representatives!
Locking In Mortgage Rates for Refinancing - Because Tim's lender is hesitant to lock, he asks me about risks associated with locking in an interest rate. Mark asks me if his lock terms seems legitimate after his discount points rose $1800.
How to Avoid Unapproved Mortgage Rate Lock Extension Fees - The bank refinancing us sent me a new Good Faith Estimate with several thousands in fees to get the original low locked-in rate to cover their "hedging". What are our options?
Sly Mortgage Rate Lock Cancellation Fee - The seller cannot provide clear title to the property we were buying. Now the bank wants to charge us $2000 in a mortgage rate lock cancellation fee.Tip: Check here for current mortgage rates and trends because there is no need to scour the internet when up-to-date information is easily found here.
Hold on! There's more! For additional Ask Kate answers, go to Locking Rates Help I
Tip: Ask Kate is where you discover solutions to interest rate lock dilemmas.
Change in Interest Rate After Locking - Also known as what can I do when the home appraisal value squashes my mortgage rate lock agreement.
Who Can Lock My Mortgage Interest Rate - They said my refinance had been approved and gave me the interest rate. I was shocked. I never said I wanted to lock in at a specific rate.
Cash Out Refi Declined - I see it as my loan was declined and I have the option to reapply if I want to without any penalty. If that's the case, couldn't I ask for a new mortgage rate and lock?
Mortgage Rate Lock Stall Tactics - My lender says I need to finish my attic. I believe this is a stall tactic because after we locked in, mortgage rates started going up and up.
Disputing Low House Appraisals - The banks says our mortgage rate lock is expiring after they re-reviewed our appraisal $100k lower than the appraiser. Can we sue the bank?
Can My Mortgage Interest Rate Be Locked Without My Consent - I only found out my rate got locked with a new good faith estimate. Is it legal to lock my rate without asking me?
Cash Out Mortgage Refinance - I closed on my cash out refi but can't pick up my money because the bank added a fee after closing for a mortgage rate lock extension.
Expired Mortgage Rate Lock - After repeatedly phoning our lender and not getting any return calls, it appears our lock will expire. Do we have any recourse?
Mortgage Refinance Problems After Closing - The bank wants to call back the funds for our mortgage that already closed. What can we do? We could lose our lock.
Mortgage Rate Lock Agreements - Kate, I have 2 questions about my mortgage rate lock agreement, specifically about expirations and extensions.
Too many to put on one page, mortgage rate lock questions keep pouring in. For more questions and answers on locking interest rates, go to Ask Kate About Mortgage Rate Lock or Ask Kate your own question.
January 2016: The Mortgage Forgiveness Debt Relief Act Update.
September 2015: Fannie Mae and Freddie Mac Improve Loan Modifications.
Keep on the right path at A Homeowner's Survival Guide to the Intimidating Mortgage Process.
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Aug 11, 16 10:18 AM