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So he said if you return to floating he could get you 5.125% but then today he said only 5.25%? Not sure i follow, but it sounds like if you pay .50 your rate can drop to 5.125 from 5.375 which would be a good move.
I wonder why I don't have the option of floating down like the other poster who locked but then was given the option of floating down. Is that state specific thing or lender/broker option?
Most lenders offer the float down. To qualify, the par rate has to drop .25% from where you locked. It is a lender option and not all lenders offer it.
I as a broker only deal with lenders that offer it in case rates do drop i can continue with the lender we locked with and still offer client a better rate.
So he said if you return to floating he could get you 5.125% but then today he said only 5.25%? Not sure i follow, but it sounds like if you pay .50 your rate can drop to 5.125 from 5.375 which would be a good move.
sorry for not being clear....
the 0.5 points is just to return to float.... period.
Now, lets say the prevailing rate is 5.125% and I locked in at 5.375% (which I did). The loan officer said after I return to float he can still get me 5.25% only and not the prevailing rate 5.125% at the time I return to float. (this is not a case of fluctuating rates over yesterday or today).
So it seems like even after I return to float I cannot get the prevailing rate, but its going to be 0.125% more than that.
Most lenders offer the float down. To qualify, the par rate has to drop .25% from where you locked. It is a lender option and not all lenders offer it.
I as a broker only deal with lenders that offer it in case rates do drop i can continue with the lender we locked with and still offer client a better rate.
Just my luck I choose the broker that can't offer that lol. This was something I never thought to ask ahead of time
Just my luck I choose the broker that can't offer that lol. This was something I never thought to ask ahead of time
Brandy,
How long to closing ? If you have another 3 weeks, maybe worth a shot at finding another lender, all you lose is about 7-800 bucks, if you can save 0.5%, it will probably pay off within a year or two.
Brandy,
How long to closing ? If you have another 3 weeks, maybe worth a shot at finding another lender, all you lose is about 7-800 bucks, if you can save 0.5%, it will probably pay off within a year or two.
I'm closing Sept. 28 I'm not using a lender but a mortgage broker who has inhouse financing, and their own underwriting. I think it's too late now since monday the mortgage commitment is due
ETA: since my mortgage broker couldn't float me down he wavied my application and commitment fee
I'm closing Sept. 28 I'm not using a lender but a mortgage broker who has inhouse financing, and their own underwriting. I think it's too late now since monday the mortgage commitment is due
ETA: since my mortgage broker couldn't float me down he wavied my application and commitment fee
At least it looks like you are getting a better deal. If closing on the 28th, i wouldnt suggest you look for another broker or lender. At this point you probably couldnt get approved and closed in time.
You still have a fantastic rate. If you need confirmation of that ask your parents or anyone who owned a house in the late 70's early 80's when rates were well into the teens.
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