Break Mortgage Rate Lock Or Not

by Level Headed Homeowner

To break a mortgage rate lock or not...
Hi Kate, I'd like to say that to break a mortgage rate lock or for that matter, not breaking a lock is a tough question considering the present market conditions.



Many home buyers are leery of mortgage lenders to begin with, thus I would presume any level headed person would look to get the best mortgage rate.

The perils of mortgage lending are quite evident to all intended parties, especially lenders.

I need to take into consideration before jumping ship, the following:

#1 Do I have a personal relationship with the lender outside of our current transaction?

#2 If no personal relationship exists, I would seriously consider switching lenders for a lower mortgage rate.

#3 If was into a mortgage rate lock agreement with my current lender, I would probably look to see if I can get the lower interest rate with my current lender first.

If my current lender doesn’t want to lose the deal, I would think they could come up with a way to break the lock and get me the lower interest rate.

#4 Now, if my current mortgage lender is adamantly against breaking the mortgage rate lock, then I would have to switch lenders.

My decision to switch lenders would be solely on the basis of the amortized interest over 30 years, in which the cost of switching lenders is minimal compared to the amount of money I would save with a lower interest rate.

To safeguard against these scenarios is hard but I believe home buyers and lenders must work together to achieve a win-win result.

Break Mortgage Rate Lock Or Not

Dear Level Headed Homeowner, Thanks for a level headed assessment of mortgage rate lock options for homeowners.

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