can mortgage rate be re-locked?

[Bette]

Originally Posted by ellenfrancki

I locked yesterday over the phone at 5.5 for a 30 yr VA loan. We provided all the application materials, but didn't sign anything besides the credit card receipt for the appraisal fee. How "locked" are we? Should we stay at 5.5? I've asked for then to lower it after what happened today, but haven't heard back yet

5.50% is still good, however, if you are working with a broker, they have many lenders they could take it to. Early today, the rate was around 5 - 5.125% with no points; now it is 5.50% no points. One of my lenders repriced 3 times this afternoon for the worse.

[Machinist]

We locked our for 90 days 1/04/08 at 5.75% and had it dropped today to 5.375%. Not bad in my opinion.

[Long Island Blues]

Thanks for your responses everyone.
I did sign a lock agreement with Shea mortgage to lock in at 5.625 with no points. They did chatge a loan origination fee of 4,000 but Shea homes is providing 4,000 towards closing costs so that was washed out.
My closing is Feb 21.
I had also applied to Wachovia bank which was about the same rate several weeks ago but I would have lost the 4,000 credit from Shea homes.
But now Wachovia's rate is 5%.
With my mortgage loan at 417,000 thats a difference of $168 less per month on mortgage payments.
I am waiting on a response from Shea mortgage about re-locking my rate.
If they will not lower my rate can I just go with Wachovia Bank?
Are there any penalties or fees involved leaving Shea Mortgage?
I don't know, I will find out.

[Long Island Blues]

Originally Posted by renriq02

Not sure where you got your information from....as this doesnt apply with lenders.

It would be nice if it was true....

Lock means 'LOCKED'.

It's like buying stocks on a stock market.

You ask for ABC stock at 9am...and it was at $15
You go back at noon...and the price is at $40....you DEMAND the broker to sell it to your for $15...since that was the 'initial quote'.

or

You ask for ABC stock at 9am...and it's at $40..and you buy 1,000 shares.
You spent about 40,000 in stocks.

You go back at noon...and it's now $15.....and now you want your money back. Too late you have already purchased it for $40!

Banks MAY lower the rate as it is their own money they're playing with.
Direct Lenders have a line of credit which they will need to lock your rate/loan amount to it. It maybe harder for them to do..

Brokers will lock your loan directly with the bank/investor.....if they want a lower rate...then the investor is going to tell them to 'go pound sand'. (had a lender tell me this )
So....they take it to another lender...but this can prolong the loan process.

That's true, but If I was buying stocks and had a broker I would know the rules.
The last time I bought a house was 31 years ago. Closing costs, interest rates,locking in a rate, are all learning experiences as you go. My mortgage person did not explain my options to me when I said I wanted to lock in my reate. She didn't even say "are you sure about that" She just locked me in.

[renriq02]

Customers are always right....never disagree with them.

NOBODY can predict the future....NOBODY knows if the rates are going down.
We can only speculate.

What if she would've told you to that rates might go down, that it maybe good to 'wait'.....and let's suppose the rates went up!

Most borrowers would jump ship, and take any other loan officer who is offering something lower.

My point is that loan officers can explain the products, rates, and maybe even the market. Loan officers can only do what the borrower is asking.
If they sway them to go to the left, and they're wrong....then it's light's out.

Realtors experience this a lot more. If they make 1 wrong decision, the client can take them to court for losses!

[GLS]

Originally Posted by Long Island Blues

Thanks for your responses everyone.
I did sign a lock agreement with Shea mortgage to lock in at 5.625 with no points. They did chatge a loan origination fee of 4,000 but Shea homes is providing 4,000 towards closing costs so that was washed out.
My closing is Feb 21.
I had also applied to Wachovia bank which was about the same rate several weeks ago but I would have lost the 4,000 credit from Shea homes.
But now Wachovia's rate is 5%.
With my mortgage loan at 417,000 thats a difference of $168 less per month on mortgage payments.
I am waiting on a response from Shea mortgage about re-locking my rate.
If they will not lower my rate can I just go with Wachovia Bank?
Are there any penalties or fees involved leaving Shea Mortgage?
I don't know, I will find out.

With the caveat that the only thing I know about your situation is the information you provided in your post, the deal with Shea smells funny. If your loan is $417K, they are charging you 4 points. The fact that it is "washed out" by them offering you a buy-down "gift" of $4K suggests that the buy-down was just a come-on. The only way to assess this is to compare what the origination fee would have been by Wachovia for the same 5.625% rate Shea gave you. I don't know what the common origination fee is in your geography for your credit rating, etc., but it would be a rip-off in my area.

My point is that it appears that in order to get you to keep your money "in-house" Shea may have created a false subsidy that they adjusted their origination fees up to cancel out. It's only my opinion, but if they use these tactics, you better watch them in other aspects of the actual building process. Good luck whatever you do.

[gilbertimlay]

I think you can get out of your locked in rate. For this you should consult your loan officer.