Wife locks interest rate but I have notCould we do if we didn't pursue or could we argue that I didn

[Vegas247]

 If my wife signed for the interest rate lock on a 30 year fixed zero points and I have not signed my interest rate lock, are we bound to the interest-rate that my wife is now saying is high at 3.75 on a 30 year fixed with 10% down with a credit score of 709 middle Fico ( my middle is 733)? What would happen if we said we didn't want to lock at 3.75 because we are now seeing that Bank of America and other banks are at 3.5 retail rate to 3.625 retail rate zero points on a 30 year fixed mortgage.  What would happen if we argued with the mortgage lender? What would happen if we didn't pursue the closing of the house or could we argue that I didn't lock in the rate and we should be able to still get a better rate?

[Anonymous]

Some things to consider -

1. Rate locks are meant to keep the rates from going up, not down. Talk to your loan agent NICELY about it and see what they say.
2. You didn't sign the rate lock. If you say that makes it invalid, they can also say that allows your rate to go up.
3. Just because that's an advertised rate doesn't mean you'll get that rate.
4. Your loan agent isn't out to rip you off. Again, BE NICE and talk about it now, not later.

You can always talk about it later but honestly, you're not going to make your situation better. The worst that can happen? The bank says take this rate or you won't get your funding. Unless you get crazy I doubt the loan officer is going to kibosh the whole deal.

[StartingOver10]

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@Anonymous wrote:
Some things to consider -

1. Rate locks are meant to keep the rates from going up, not down. Talk to your loan agent NICELY about it and see what they say.
2. You didn't sign the rate lock. If you say that makes it invalid, they can also say that allows your rate to go up.
3. Just because that's an advertised rate doesn't mean you'll get that rate.
4. Your loan agent isn't out to rip you off. Again, BE NICE and talk about it now, not later.

You can always talk about it later but honestly, you're not going to make your situation better. The worst that can happen? The bank says take this rate or you won't get your funding. Unless you get crazy I doubt the loan officer is going to kibosh the whole deal.

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^^^Yes, well said.

Your rate floats until you lock it. It floats all the time - daily. Some real world events affect the rate temporarily. It would be a shame to have something happen halfway around the world three days before your closing affect your rate by 1/2 point (possible). 

Locking your rate protects you from those minor ups and, unfortunately, the down's too.

If your wife is looking for a lower rate - find out from your LO how many points it would cost to get the lower rate.  If you plan to be in the house and retain this mortgage for the long term, it is a worthwhile discussion. If you plan to be in your new home for the short term (5 years or less) it probably isn't worth it, but you have to see what is best for you and your wife.

PS Pick up a chart showing the rates historically so she can have some perspective.  Those advertised rates are available under certain qualifications - find out what those qualifications are so you can let your wife know that the teaser rates are just that - something to get you to call for a mortgage, not necessarily what you do get when you are approved.