U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Real Estate > Mortgages
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 12-17-2008, 01:20 PM
 
17 posts, read 41,478 times
Reputation: 10

Advertisements

We have recently purchased a home. When we closed, the lender said we would be eligible for a float down rate within a year. The rates have fallen, and we have attempted to contact them asking for the float down. They ignore us. Should we consult an attorney? Do we have any recourse options?

Thanks
Reply With Quote Quick reply to this message

 
Old 12-17-2008, 01:50 PM
 
31 posts, read 104,265 times
Reputation: 12
Wow, this is the first I've heard about a rate-float AFTER a mortgage has been executed. I am not an expert but I'm interested in hearing the comments.

I'm shopping for a mortgage right now and I'm having a VERY hard enough time getting loan officers to acknowledge a rate-renegotiaton policy. Most give a very generic, its at their discretion. There is one loan officer that I've been emailing for daily updates. He flat-out is ignoring this question when he types me daily rates to me. I could have sworn last week, he said they offered one free float-down but this was over the phone ... I think he does not want it on record. It is a sneaky way of doing business, imo.
Reply With Quote Quick reply to this message
 
Old 12-17-2008, 01:54 PM
 
Location: West, Southwest, East & Northeast
3,446 posts, read 6,662,069 times
Reputation: 868
Quote:
Originally Posted by Stuart1126 View Post
We have recently purchased a home. When we closed, the lender said we would be eligible for a float down rate within a year. The rates have fallen, and we have attempted to contact them asking for the float down. They ignore us. Should we consult an attorney? Do we have any recourse options?

Thanks
Does your contract with the lender state that you have a float down rate provision, and if so for how long, e.g. one year from closing date? Did you pay more (in points) to the lender to be eligible for a float down? If your answer to these questions are "no", then I'd say you are not eligible for a float down.

Maybe you were told early on in discussions of applying for a loan that you were eligible for a float down rate, but unless you requested it and paid extra in points, it's highly doubtful you have it as part of your contract with the lender.

I'm surprised your lender is ignoring you when you ask about this. They should pull your paperwork and advise you if you do, or do not, have a float down provision in your contract.
Reply With Quote Quick reply to this message
 
Old 12-17-2008, 02:27 PM
 
Location: Charlotte, North Carolina
5,137 posts, read 15,459,455 times
Reputation: 1008
If you have nothing in writing then you have nothing....

Sorry.
Reply With Quote Quick reply to this message
 
Old 12-17-2008, 02:28 PM
 
28,449 posts, read 72,710,390 times
Reputation: 18469
Default Promises, promises, promises.

Quote:
Originally Posted by Stuart1126 View Post
We have recently purchased a home. When we closed, the lender said we would be eligible for a float down rate within a year. The rates have fallen, and we have attempted to contact them asking for the float down. They ignore us. Should we consult an attorney? Do we have any recourse options?

Thanks
The "marketing pitch" almost certainly was not backed up with anything in writing. I really doubt there is anything that can be done, just chalk this up and 'live and learn'.

Rates are dropping, find another lender.
Reply With Quote Quick reply to this message
 
Old 12-17-2008, 03:18 PM
 
17 posts, read 41,478 times
Reputation: 10
I cannot find it in my paperwork, though I havent looked very hard. I think the loan officer and lender both KNOW I'm eligible for it, though it's obviously not in their best interest to initiate a float down. I imagine they have been told to ignore these requests in the current financial situation and borrowers will just forget. I will spend a large amount of my time proving them wrong.

So can I just shop my loan around to other lenders? Will I pay fees?
Reply With Quote Quick reply to this message
 
Old 12-17-2008, 03:42 PM
 
Location: Charlotte, North Carolina
5,137 posts, read 15,459,455 times
Reputation: 1008
If you dont have it in writing then it's going to be hard to prove anything.

Refinancing will involve costs that can be 3-4% of the loan amount.

Quote:
Originally Posted by Stuart1126 View Post
I cannot find it in my paperwork, though I havent looked very hard. I think the loan officer and lender both KNOW I'm eligible for it, though it's obviously not in their best interest to initiate a float down. I imagine they have been told to ignore these requests in the current financial situation and borrowers will just forget. I will spend a large amount of my time proving them wrong.

So can I just shop my loan around to other lenders? Will I pay fees?
Reply With Quote Quick reply to this message
 
Old 12-17-2008, 10:16 PM
 
Location: MID ATLANTIC
7,846 posts, read 19,171,545 times
Reputation: 8671
Yep, start shopping for a refi with other lenders and in the same breath, contact other recent home buyers and see if you have a common denominator, same builder, same loan officer. I would say a party of three with the same story is worth a letter from an attorney. It's not going to get you millions, heck, probably nothing. But it's unethical and both need to be history.

And then, it just may get you some kind of concession or assistance with that refi, but don't hold your breath. But do attempt to hold their feet to the fire. If you heard them correctly, they influenced you unfairly.
Reply With Quote Quick reply to this message
 
Old 01-05-2009, 03:41 PM
 
17 posts, read 41,478 times
Reputation: 10
Just heard that I can streamline to 5.5% from 6.5%. I can also float it for as long as I want and if rates drop again I can lock. I am eligible for a float down for the entire life of the loan. I guess underwriters are inundated with refi's and thats why it took so long.
Reply With Quote Quick reply to this message
 
Old 01-05-2009, 04:10 PM
 
Location: Charlotte, North Carolina
5,137 posts, read 15,459,455 times
Reputation: 1008
i had a streamline that was 6.5% to 5.5%

U/W denied it because it was a small loan and there was no benefit (according to the underwriter)

rates dropped to 5% and I told them it's a good thing the U/W denied it!

Quote:
Originally Posted by Stuart1126 View Post
Just heard that I can streamline to 5.5% from 6.5%. I can also float it for as long as I want and if rates drop again I can lock. I am eligible for a float down for the entire life of the loan. I guess underwriters are inundated with refi's and thats why it took so long.
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Real Estate > Mortgages
Similar Threads
Follow City-Data.com founder on our Forum or

All times are GMT -6.

© 2005-2020, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top