15 FHA Loan Questions about rates and locks

[Anonymous]

I have a contract pending on a HUD forclosure.  The home is worth about 150 and I bid 98K and got them to pay 3K in closing costs.  My friend has is a realtor and loan agent (?).  She got us a lock @  4.5% two weeks ago with no orig fee or points.

What happens if rates drop?  Are there obligations to the lock?  Is this a good deal?  How hard is a streamline refi if the rates go 3.5 in 6 months?

The loan is in underwriting ATM and we can close end of next week.  

[Anonymous]

My understanding when I locked my loan was that it was set. Couldn't take advantage if rates happened to go lower, but then I was protected in case they wen't higher.

[haapril]

Quick question did you purchase at a auction????

[WannaHouse]

I think it's a done deal, but at 4.5%, I would be VERY happy. Don't check them, and you will never know. 

[Anonymous]

4.5% is an incredible rate.

[Anonymous]

Yes. Goverment forclosures are listed on bidselect.com