break a rate lock? (home loan, fee, refinancing, loan)

[wescovy]

Chalk this up to poor spousal communication...

We are looking into refinancing our home loan. Friday the 19th I talked to current lender, Countrywide, and paid to lock into a rate with a 5.625 APR. It seemed like a good rate at the time

Husband wasn't too thrilled with the rate, and Monday morning locked into a rate of 4.99% APR with Chase... so yes he did good.

Both packages are in the mail. Crap, I am going to have to break one of them. I was willing to "look" into breaking the 1st lock if rates really were so much better but was shocked that dh already locked with a 2nd bank.

I expect to forfiet my rate lock fee ($395) but are there other reprocussions I am in for? DH says no

[VictorBurek]

No, just contact Countrywide and let them know you wish to cancel. But now you see why they charge you to lock a rate, at least they still made $395.

For future, you should never work with a lender that makes you pay to lock a rate. You will always have to pay for an appraisal, but if they ask you to pay them to lock a rate, hang up the phone and call another lender.