Lock-In Rate Question

stuck. what's worse, if rates go down and your lock expires, you need to pay to extend the crappy rate. in these situations, brokers are better. they can float you to 2 banks and lock with one. if rates go down, lock with the other and tell the first one to go fish.

if you have good relationship with your banker sometimes they are willing to adjust to lower rate at closing if rates have dropped a material amount.

do you know how much is the usual fee to extend the lock in?

To add on to this. I'm in a similar situation. Clearly rates are on the rise right now but I'm 10 weeks away from close. I understand there are hefty charges for breaking a locked rate prior to close. However, I think there is a loophole to refinance post close. I understand that there are two sets of closing costs but that is dwarfed on the savings on a large jumbo loan.

check the docs for the loan, some stipulate that you can't refi for 6 mos to a yr.

It can cost about an eighth of a point to extend the rate for 7 days.

Ten weeks away from the close, when did you apply?

And yes brokers are better for many reasons.

Ellen Silverman
E.S. Funding Co
Licensed Mortgage Broker since 1990
Licensed Real Estate Broker since 1987
Esfundingco@aol.com
www.esfunding.instantlender.com
NMLS#60631

i am told wells fargo has free float down option.

is float down usually only at close, or any time between rate lock and closing?

double app a float with another bank. costs an appraisal fee and protects you against costs of float down and lack of float option at some banks.

James.mcpartland@bankofamerica.com
646.556.0207
NMLS#614743

i locked in a mortgage rate on april 7th... the lock expired on June 7th...to keep my rate i had to pay a fee of 515 dollars for each 7 days i went over...if you think 4% is going to be the best you'll get then lock it in but remember the fee if you cant close in the 60 day time frame...i dont think in the next 60 days it will be that far above 4% so locking it in at that rate is a risk but your call as to where you think rates will be.

My lock had a float down that if rates dropped more than 50 bps, I could float down at no additional cost. If it was less than 50 bps, I was stuck.

Check out this post on our StreetEasy blog for more information on shopping for a mortgage: http://ownyourhome.streeteasy.com/shopping-for-a-mortgage-in-nyc-heres-what-you-need-to-know/