Mortgage Blog

Though I recommend to close all the loans with your agents, some
borrowers will still ask whether they can lower the rates of 0.125%
by re-lock or floating down.

1)Floating down is not free. Most of the lenders will charge 0.625%
points to do that. If the interest rate is 0.25% better, you still
can not get better rates. You will get 0.125% better if the market
is 0.375% better.

2)Re-lock. For the same lender, they will only re-lock with worst
case scenario. That means you can not lock for better rates. Or
you need to wait 60 or 90 days after the original rates expired,
then you can re-lock again. For different lenders, you will have
to do appraisal again, wait in the new "queue" for the loan processed
again. And most agents will not re-submit the loan to another
lender any more if we know the rate is going to lower.

And yes, the rate may go lower than the current level. Do you have
to wait?No. Do you need to close the current loans? Yes.

For those of you who tried to switch lenders or brokers for better rates, did you find that the rate went lower even after you tried new lenders? Because nobody knows what's the lowest rate cann it go. Remember, the market will always surprise us,in one way or another.

For us(loan originators), though we are tired and working very, the first priority is to get the loan closed, though with delays and different
problems, hard underwriting guidelines, appraisal values, etc.