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Helpe me understand my rate

New Contributor

Helpe me understand my rate

Ok so when I applied for a pre approval the rate was 4.62 for 100% Financing and that's what I got it. Three days after the rates dropped to 4.5 and its being stable for the last 2 weeks.

So my question is, when I lock my rate, will I be stuck with 4.62 or I will be able to lock at 4.5

Message 1 of 8
7 REPLIES
New Contributor

Re: Helpe me understand my rate

I believe you can ask for whats called a rapid rescore before close but you may be locked into that rate.

Message 2 of 8
Regular Contributor

Re: Helpe me understand my rate

Rate you qualify for will change with the market and of course if your score changes. Rates have been trending down recently so you should be seeing a lower rate than your original offer
Message 3 of 8
New Member

Re: Helpe me understand my rate

Make sure that your APR is the same as your interest rate. Bad loans will bundle in fees and closing costs which is reflected in a higher APR. Good loans, they are exactly the same amount.

Message 4 of 8
Frequent Contributor

Re: Helpe me understand my rate


vinblastine wrote:

Make sure that your APR is the same as your interest rate. Bad loans will bundle in fees and closing costs which is reflected in a higher APR. Good loans, they are exactly the same amount.


IF you have the cash to pay for all the fees, then the APR will match the interest rate. Mortgage insurance, if there is mortgage insurance, will make the APR jump.

Mortgage Loan Officer in Greater Chicago area plus 47 states.
Message 5 of 8
Super Contributor

Re: Helpe me understand my rate

when you lock, you lock at market rates that day. not at the rate you were pre-approved on

 

Retired Lender
Message 6 of 8
New Member

Re: Help me understand my rate

Always ask for lender credits. My last 2 refinances only cost me about $800 at closing for a $240K loan. 30 yr fixed at 3%. I timed the market just right.

Message 7 of 8
Super Contributor

Re: Help me understand my rate


vinblastine wrote:

Always ask for lender credits. My last 2 refinances only cost me about $800 at closing for a $240K loan. 30 yr fixed at 3%. I timed the market just right.


you pay for lender credits in a higher rate over the life of the loan.

 

good short term strategy. bad long term strategy

 

Retired Lender
Message 8 of 8