Switch Mortgage Rate Lock or Not

by Belle from Georgia, USA

Switch Mortgage Rate Lock or Not: Kate, we completed our mortgage rate lock late last week with our mortgage broker. We would not have been aware that refinancing would be a good option for us at this time except he took the time to call us.

When he called, he informed us that we would benefit from a refinance and that the interest rates had dropped to such a point that we should jump on it.

Now we hear that the Fed is thinking of dropping the rate even further, to 4.5 percent, we are half a point above that, so do we pull out or not.

I say NO, we may talk with our mortgage broker and see if we would be penalized for breaking the mortgage rate lock and going lower.

I have done business with this broker for some time now and would not feel right doing this to him. What goes around comes around and in the end doing something like this is liable to come back and bite you back.

Kate Answers: Switch Mortgage Rate Lock or Not

Hi Belle, Thanks for sharing about your experience with the mortgage rate lock situation.

Your loyalty to your mortgage broker is refreshing. It certainly sounds like you have the type of broker who will go to the ends of the earth to make sure you get the best deal possible.

I hope you'll invite friends to comment on this page. Come back to contribute again in the future. Of course, all of my information is free. So remember to add Get Your Best Mortgage Rate to your favorites and visit it often.

Ask Kate

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.


Return from Switch Mortgage Rate Lock or Not to Get Your Best Mortgage Rate

Comments for Switch Mortgage Rate Lock or Not.

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Consider Switching to Broker with the Lower Rate
by: Lee

Hi Lee, Kate here.

I moved your comments to Verbal Mortgage Rate Lock Agreements Are Worthless where more readers will see them. You have a lot of good points. Thanks for writing.
Switch Brokers
by: danj585

That's pretty easy. Why go to another broker. You have one that has done all the work. Explain to the broker that the rates have dropped, and that you would like to stay with them. Please, what can you do for me? That's all. Be honest.

You may need a broker in the future and it's better to have one that can work with you, than to have to work with one you stiffed. That's why they're called brokers.

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