Helpe me understand my rate

[Anonymous]

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

[Anonymous]

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

[Anonymous]

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

[vinblastine]

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.

[kc0039]

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@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.

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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.

[DallasLoanGuy]

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

[vinblastine]

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.

[DallasLoanGuy]

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@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.

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

good short term strategy. bad long term strategy