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So, I succumbed to the MBS volatility and locked a rate on an investment property earlier this week. I know I'm stuck with rate, but as the rates are drifting down, am I able to at least negotiate the Origination fees?
I don't think the market got much better, if at all. It's human nature to want the best rate, but 90% of buyer's out there will see rates drop below their lock. Only occasionally will there be such a difference the current lender won't match, because its too costly to drop the rate for one loan. (This is where it could make a difference if you are using a Realtor's recommended lender. Lenders generally go out of their way to make sure their referral sources' customers are happy).
What are you locked in at? What kind of property? (Condo? 2-4?, single family?) And for how many days?
Many lenders have internal policies requiring a minimum change in rate before they will even consider rate renegotiation. Do not expect to get your application fee or appraisal fee back, and, do not expect one lender to accept another lender's appraisal if you must pick up your toys and go elsewhere. Lenders without a written policy are asking for trouble, trouble because without this written policy on rate renegotiation, they face trouble with the feds for not treating borrowers equally. So, some just say no to renegotiations across the board. And just because they have a written policy, it doesn't mean they must share this policy with the public.
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