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View from a Lender...Rates get lower suit ok to bail?

New Member

Re: View from a Lender...Rates get lower suit ok to bail?

A ONE WAY STREET

 

Recently applied.  Appraisal great.  Fico Great. Income great.  Lender PHH interesting.

 

Did not want rate lock.  Demanded we lock or pay a higher interest rate for a rate guarantee.  Lock expired rates down.  Automatic 60 day extension of 60 day lock

 

IN ENGLISH

We had you locked at 4.  Rates are 3.5 you must wait 60 days before we will reset to 3.5.  Discussed and complained for 30 days.  PHH canceled loan.  New reset date is 90 days after 60 day lock.

 

 

 

 

 

Message 31 of 36
Regular Contributor

Re: View from a Lender...Rates get lower suit ok to bail?

Sounds like normal policy....Not sure why you were offered such a high rate in the first place. Currently locking 3.25% no points 30 year fixed but a deal is a deal. Some lenders have no ability to float rate down and have to wait 60 days after expiration to relock. Under no obligation to float down a rate.

Message 32 of 36
Valued Contributor

Re: View from a Lender...Rates get lower suit ok to bail?


mkm77 wrote:

Sounds like normal policy....Not sure why you were offered such a high rate in the first place. Currently locking 3.25% no points 30 year fixed but a deal is a deal. Some lenders have no ability to float rate down and have to wait 60 days after expiration to relock. Under no obligation to float down a rate.


OK, but what I don't get is why a broker can not just use a different lender once a lock is expired. No active rate lock basically means no active agreement. Asking a borrower to wait another 60 or 90 days to relock after an expiration seems pretty extreme from a consumer standpoint. From a consumer standpoint, paying new fees one time for 5 or 6 figures of savings over the life of a loan is a no brainer. 

 

And just for the record, I have never tried to change terms after a rate lock. I see it as my gamble. I have sat for a couple of weeks and waited to lock as my broker and I watched rates, but never have I tried to back out or renegotiate once I have pulled the trigger and locked.


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Message 33 of 36
Regular Contributor

Re: View from a Lender...Rates get lower suit ok to bail?

Because it probably isn't a broker....More than likely a direct lender and they have no place to send it.

Message 34 of 36
New Member

Re: View from a Lender...Rates get lower suit ok to bail?


mkm77 wrote:

Sounds like normal policy....Not sure why you were offered such a high rate in the first place. Currently locking 3.25% no points 30 year fixed but a deal is a deal. Some lenders have no ability to float rate down and have to wait 60 days after expiration to relock. Under no obligation to float down a rate.


Not bad. What are your rates on 15yr re-fi's ? I'm about to re-fi my current home and possibly two of my rental properties. Do you do business in Tx? Harp II at all?

 

 

 

--wes
Message 35 of 36
Regular Contributor

Re: View from a Lender...Rates get lower suit ok to bail?

I don't think they like us directly marketing but we are based in TX. PM me and I'll send you some info.

Message 36 of 36