September 20th, 2010 11:29 PM by Eric Fang
Q: I locked a loan with you for the rate of 3.5% for 5/1ARM in June, sinec the current rate is lower and I have enough money to pay down to make it 80% LTV, can I get the current market rate3.25% and also re-use the appraisal value of $500k?
A: Your last rate lock expired on July 7th. We have two options now.1)We can do the loans with a different lender.2)We can re-use the appraisal and re-lock the loan with the same lender.
But for most lenders, they have the following guideline for the ratere-lock(same lender):1)If you lock the rate within 90 days of the last rate lock,you will have to take worst case scenario. So it the current rateis higher than the market rate, then you will take the current rate;If the current rate is lower, then you will have to take the oldhigher rate(you last locked).
2)If you want to re-lock with the current low rate, you will have to wait until after Oct 8th.