What's my sunk cost for changing mortgage bank after appraisal and commitment

Just because they quoted you a better rate doesn't mean that they can lock it in after you paid an "application fee". Or if they can get you a better rate your closing cost would most likely be higher.

what's the loan amount for? and what is the rate quoted? and since you don't have a lock, what are the two banks quoting you? and type of loan?

30 year fixed conforming.
One bank I have established relatioship quote me 5.25%. another one gave me 5%.

They both sound like low balling. Your probably paying 2 points. Did you get a GFE?

tbontb - Its a tough choice if you already received your commitment and appraisal. I personally dont think its worth the risk not knowing what can happen along the way with the other lender. Also, if you havent locked in, there's no guarantee that 5% rate will still be there. Just some thoughts from another mortgage banker. sunny.hong@bankofamerica.com

Yeah, don't forget the closing cost. Ask what the Good Faith Estimate will be. They can still lie to you about it, but then you will quickly find out when the commitment letter comes in with the GFE.

I got 5.25% with 0 points and locked very recently. Missed out on 5% 2 or 3 weeks ago. I wouldn't be gambling too much on the mortgage rates. I was hitting myself over the head for not locking at 5%. It was stuck at 5.5% with 0 points for 2-3 weeks straight until it dipped on Monday. Locked immediately when it hit 5.25%.

Forgot to mention...

It's hard to justify 25bps since when you look at your monthly carrying cost and it doesn't really change that much with 25bps at rates this low.. especailly when you consider that most first time buyers don't keep their first place for more then 5 years. The only reason why I would do it is because you are trying to squeeze out every amount possible on a mortgage. That would be the only thing I can think of, if the closing costs are equal. When you are at st .375% or .5% off... then maybe we might be talking about something worth considering.

You can always give the other bank a try and see if they can give you a lock. Not sure how messy it will be on when you are ready to switch over to a different lender. Check your contract with the seller to see if there are timing issues since I am sure the clock is ticking.

Thanks all. I think I have an idea what to do now.