Unlocking Mortgage Rate Locks

by Gary
(USA)

Regarding unlocking mortgage rate locks: I locked a rate last month at 5.5 percent and my credit score is 775. I see rates are now 5.0 percent. I have read that you can unlock a lock. I am closing about July 31. I have been been pre approved as well as approved for the loan?

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Is it possible to unlock an interest rate? Do i have to pay to unlock the lock? What steps should I do? Thank you.

Unlocking Mortgage Rate Locks

Dear Gary, When you locked, you should have received a mortgage rate lock agreement that spells out the terms of your lock. If you didn't, get the agreement now to consider your options.

Some lenders offer float downs during times of decreasing interest rates for mortgage applicants who have already locked. Float downs can be associated with a fee or be free. It all depends on your lock agreement.

This is why I say every mortgage borrower must get a written good faith estimate and a written rate lock agreement because Written Rate Lock Agreement + Written Mortgage Broker Fees = Best Mortgage Rate.

Get additional perspective on mortgage rate lock pros and cons from letters written by other Readers just like you. Many of the contributions share individual views regarding unlocking mortgage rate locks. FAQS are included also.

Take a moment to bookmark Unlocking Mortgage Rate Locks to your favorites. Invite friends to comment on this page or ask another question of their own like you did,

Gary, Here is some more help on locking-in mortgage rates.

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Best Wishes,

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P.S. Go to my Best Mortgage Rate Blog, an entertaining source of mortgage information. Subscribe now to the RSS feed.

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Return from Unlocking Mortgage Rate Locks to Get Your Best Mortgage Rate


Comments for Unlocking Mortgage Rate Locks.

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No Free Lunch
by: Jill

Boy this really got me thinking. How many of us get caught up in the moment and think that things are either going to go right or that things will not change. This is were a series of questions about "what could go wrong?", "What might change?" that should be part of the due diligence process that we should all go through in picking a lender or loan.

As example the "cheapest" rate might have the most restriction on the loan process, where as a slightly more expensive rate might offer more options as an insurance policy if things change, especially if they should change in the borrowers favor.

Airlines do this all the time. The cheapest tickets are non refundable, if you want the ability to change you have to pay for it.

Ah, I took the long way around just to get to "there is no free lunch! Jill

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You can also ask Kate about your mortgage at Ask Kate About Buying a House.

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