Rate Lock and Mortgage

by Matt

Ask Kate For Rate Lock and Mortgage Information: Hi Kate, I have a question about locking a mortgage rate. I paid a lock-in fee twice because we have been waiting to close on a home. I asked my mortgage broker if I can go without re-locking the rate...

But because rates have come down he said "it's all based on worse case scenario" - so I wouldn't be able to get the lower interest rate.

And he also says if interest rates go up and I don't lock the rate, I would no longer qualify for financing. This is because the rate I've been locking in keeps me on the border line for qualifying.

I am waiting to hear how much it would cost to pay down the mortgage rate to qualify in case I don't lock in now and rates go up before we close on our home.

Is the "worse case scenario" about rates true? Are there any other options I have without re-locking the rate? Matt

Kate Answers: Rate Lock and Mortgage Information

Dear Matt, Something crucial is missing here.

Two times you told me what your lender said and a third time that you are waiting to hear back.

To be perfectly blunt, quit relying on your mortgage broker for rate lock and mortgage information! Change this pattern right now!

This is no reflection on the character, skill, experience or good intentions of your mortgage broker. It is a matter of knowing how to protect your rights as a mortgage borrower.

What can you count on when you are getting a mortgage?

Whatever is in W-R-I-T-I-N-G!

Companies have varying rate lock and mortgage approval policies. I have seen the policies you describe but I have seen various others also. So you MUST get the facts in writing.

Otherwise your mortgage rate lock is meaningless.

Go here on my website for further in-depth help at Mortgage Broker Fees - Get 'Em In Writing!

At the bottom of this page, get into the interest rate lock and mortgage help. I have written each of these pages with one thought in mind -- to empower home buyers and homeowners to improve their mortgage process.

You'll learn about mortgage rate guarantees, the process of locking a rate, what documents to ask for, associated lock-in fees and more insider tips to empower you.

Best Wishes,

PS If you still have questions regarding rate lock and your mortgage, write me at Ask Kate where every question is a good question.

Finding The Help You Need For Locking Rates

My Interest Rate Lock Guarantee - Help for timing your rate lock.

The best solution to avoiding hidden fees is to ask the right questions before you lock mortgage rates.

All about getting mortgage broker fees in writing - Otherwise your rate lock is meaningless!

How good is a mortgage interest rate lock guarantee? In the end, you have to read your lender's paperwork.

Because Yield Spread Premium is a common reason for losing your rate lock, here is the insider scoop on this odd sounding term.

Questions to Ask BEFORE You Lock

Ask Kate about locking - Ask a question and get an answer from Kate.

Search Readers' questions and Kate's answers at Mortgage Rate Lock Center

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