USAA CHANGED MY LOCKED RATE

[nathan]

When I signed my contract on sep 24th, I immediately called usaa to lock my rate. They gave me two options to either lock at 5% with 1/4 point or lock at 4.857 with 1.125 points. I chose the 1/4 point point, but when I went on their website to check my mortgate details, it says I am locked at 4.857 with 1.125 points, and this increased my closing cost. I plan to call my lo tomorrow, and request them to change it back. I know they record their calls, so they can trace the call I made to lock my rate. I am prepared to walk away if they refuse to correct the error. Is there any thing else I can do? Please advice.

[ShanetheMortgageMan]

When you lock in a rate, you lock in that day's interest rates.  The rates & costs for those rates that were available on that day you can switch between.

[llecs]

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ShanetheMortgageMan wrote:
When you lock in a rate, you lock in that day's interest rates.  The rates & costs for those rates that were available on that day you can switch between.

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I'm learning here....if OP saw that rates have dropped even lower, can he have the rate unlocked to get into a better deal?

[ShanetheMortgageMan]

Once the rate is locked, generally it's locked until the expiration date.  There are different lock period terms, from just a few days, all the way up to 360 days, typically in 15 day increments (until 60 days, then increases by 30 days).  Once the rate expires, if it is locked within 30 days you will get "worst case rates" between the day you re-lock and the original interest rate.  However once 30 days past the expiration date "current day" rates will always apply.  Some lenders offer a float down option, which is if interest rates get lower they will give you the new interest rate, but never higher than the rate you locked in at - that isn't very common however.  Most lenders will only float your interest rate down if the rates have fallen significantly enough, and will meet you half way or a little more than half way, not quite giving you the new interest rate but still lower than originally locked in.