topic If interest rates drop tomorrow, how will I know the lender wont pocket the difference? in Mortgage Loans

If interest rates drop tomorrow, how will I know the lender wont pocket the difference?

SamsungHDTV — Thu, 07 Jan 2021 02:55:52 GMT

I'm being quoted 2.25% with no points on a 15 year fixed refinance. It's a great rate, but I didn't want to lock without seeing the loan estimate to confirm the lender fees I was being quoted. I'm promised the loan estimate tomorrow.

Rates can change daily. So, if they go down tomorrow how can I confirm independently from the loan officer?

My concern is that the rate goes down to say 2.125%, and the loan officer will say, "no rate change, but you should lock today at 2.25%!"

Re: If interest rates drop tomorrow, how will I know the lender wont pocket the difference?

Anonymous — Thu, 07 Jan 2021 03:27:01 GMT

I can't answer your question, unfortunately, but that's a great rate. Would you mind sharing the lender? No worries, if not.

Re: If interest rates drop tomorrow, how will I know the lender wont pocket the difference?

SamsungHDTV — Thu, 07 Jan 2021 15:38:37 GMT

I don't mind sharing lenders at all, I actually got the same quote from multiple lenders. Some credit unions, correspondent lenders, and I think a broker. What area are you in?

Feel free to send me a PM if you prefer to stay private.

Re: If interest rates drop tomorrow, how will I know the lender wont pocket the difference?

dragontears — Thu, 07 Jan 2021 18:38:08 GMT

@SamsungHDTV wrote:
I'm being quoted 2.25% with no points on a 15 year fixed refinance. It's a great rate, but I didn't want to lock without seeing the loan estimate to confirm the lender fees I was being quoted. I'm promised the loan estimate tomorrow.

Rates can change daily. So, if they go down tomorrow how can I confirm independently from the loan officer?

My concern is that the rate goes down to say 2.125%, and the loan officer will say, "no rate change, but you should lock today at 2.25%!"

Mortgage rates can actually change within a day. There is no way (that I know of) to check if a specific lender is giving you their "best" rate at that moment in time other than to make lenders compete with each other i.e. get a rate from lender A and ask lender B to match it. The issue with that is the rate from lender A would have to be on the same day as the rate you are locking in with lender B and you need it in writing. So if you can find a lender A that is willing to waste their time knowing you are going with lender B.....

Re: If interest rates drop tomorrow, how will I know the lender wont pocket the difference?

NC_Mtg_Loaner — Thu, 07 Jan 2021 21:20:14 GMT

in this environment you should be more concerned about the rate going higher.....of course the US 10 YR Treasury Bond yield which is the barometer for mortgage rates in America is already above 1.0% and is about a quarter point higher than it was a month ago so you might see banks already charging more for these rates already.

nonetheless, 2.25% fixed for 15 years is fantastic so I wouldn't recommend waiting for it to go lower.

Re: If interest rates drop tomorrow, how will I know the lender wont pocket the difference?

michaels88369 — Fri, 08 Jan 2021 01:18:39 GMT

I was just quoted a 1.875% on a 15 year second home purchase. I couldn't close until March 1st due to the seller waiting to close on their new home. So I decided to take a 2% APR on a 60 day rate lock with 0.125% points. My MMS is 668 and I'm excited to get this loan finalized come March. I am putting down 20% on the loan of $333k. Mortgage looks to be $266,600 after paying DP and Closing Costs. Rates are astronomically low and had to take advantage!