Refinancing Advice Needed For Mortgage Rate Lock
Ask Kate: Refinancing Advice Needed For Mortgage Rate Lock Here is one reader's question regarding a mortgage rate lock. With mortgage rates dropping to a 7 week low, I imagine other homeowners and home buyers will be seeking out solutions to mortgage rate lock also. --Kate
Dear Kate, We are in the process of refinancing our home. Our locked-in interest rate on a 30 year fixed rate mortgage is 6.125%.
6.125% looked pretty good until the most recent influx of federal reserve money drove mortgage rates significantly lower. Is there anything we can do to take advantage of this latest federal fix? We don't close until sometime in December.
Kate Answers: Refinancing Advice Needed For Mortgage Rate Lock
Dear Gordon, I understand how confusing a mortgage rate lock can be because each lender can have a different policy.
Since you say you already locked in your rate and mortgage rates have since dropped, you are now wondering if you can take advantage of the current scenario to get a lower rate. I understand!
You should have received your mortgage rate lock agreement after locking which usually describes the policy of your lender.
See if there are provisions for a "float down". Lenders will sometimes split the difference with a borrower after rates take a significant drop. You may have paid for this feature when you locked your rate.
There is no magic bullet when it comes to locking in mortgage rates. You can be guaranteed of this refinancing advice. Interest rates will go up, down or stay the same.
Of course it is normal for all of us to want the best deal we can get. Just be smart and don't risk the locked-in rate you already have. Few borrowers hit the bottom when it comes to interest rates because plain and simple, we never know the bottom until it's over.
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Finding Help 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.
Get mortgage broker fees in writing or your rate lock is meaningless!
How good is a mortgage interest rate lock guarantee?
Yield Spread Premium is a common reason for losing your rate lock.
Questions to ask before you lock.
Search questions and answers at Ask Kate Mortgage Rate Lock Center I.
More questions and answers at Ask Kate Mortgage Rate Lock Center II.
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