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Every lender has a different policy- doesn't change every day.
Let us know who it is and we can be more specific.
I am with Wells Fargo.
They have a float down policy that cannot be used now because the rates are almost the same as my lock so I'm not locking down, besides it comes with a 0.5 point that I need to buy. So probably extending is the best option.
I am with Wells Fargo.
They have a float down policy that cannot be used now because the rates are almost the same as my lock so I'm not locking down, besides it comes with a 0.5 point that I need to buy. So probably extending is the best option.
Wells rate lock extension costs .03 per day. To find out whats best for you just do the math on the total daily cost and the .5% float option against the daily fee and see which is cheaper. You are probably right about the extension being chepaer but have your LO do the math to be sure.
What happens when you lock a rate of 3.25 and sale falls through. You sign a new purchase and still have 8 days left on your original lock. Why do I now have to sign for a 4.25 lock? Why didn't my broker help me with a lock extension?
What happens when you lock a rate of 3.25 and sale falls through. You sign a new purchase and still have 8 days left on your original lock. Why do I now have to sign for a 4.25 lock? Why didn't my broker help me with a lock extension?
New address= new file = subject to current rates.
Nobody ever asked the OP what the size of the loan is - this is the main determining factor in a Rate Lock Extension calculation.
This was a rate lock on a VA loan. Sale price was 143,500. Loan was 152,203. Sale fell through. New pur chase was 172,000, and loan amount @183,000. Lock lasted 45 days from 21 may 13 to 14 Jul 13. I welcome some advice. pfhtex please let me know if broker should of advised me to extend lock for this new purchase.
Last edited by Ruller1953; 07-21-2013 at 08:02 PM..
Reason: lost mortgage rate from 3.25 to 4.25
Nobody ever asked the OP what the size of the loan is - this is the main determining factor in a Rate Lock Extension calculation.
This was a VA loan with seller concessions. Original sale was for 143,500 and loan was 152,203. Sale fell through because property changed. Next purchase was for 172,000 and loan was for @183,000. Lock dates were for 45 days with no fee. March 21 to Jul 14,2013. Purchase offer was accepted on Jul 5 which was more than a week before lock expiration. pfhtex respond
The rate lock is only good for the first property. Since that contract fell thru, the lock is now gone and you start all over with the new property.
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Rate lock extension
