Some Options for After You Lock in a Rate

Some Options for After You Lock in a Rate
Daily Real Estate News
August 14, 2006

Buyers who locked in a mortgage interest rate a few weeks ago, before the decline, may be wondering if they made a mistake.

A survey of major lenders shows that the average cost of 30-year fixed-rate mortgage fell from a high of 6.93 percent on June 28 to 6.65 in the week of August 2.

But after years of consistent increases, locking in a rate was a smart thing to do. Plus, there is a slight chance that buyers can do something to change their rate. Here's what they can try:

Talk to the lender.

They have nothing to lose by asking. One loan officer we talked to suggested that a lender might be willing to split the difference with the borrower, just to keep you a loyal customer.

Secure a lower rate from a different lender by starting the process all over again.

This would only be possible if you have enough time to go through another application process. You would lose the application fee you paid the first lender, but if the savings were significant, it might be worthwhile.

Buy down the rate.

If the buyer decides to buy down the rate (pay discount points upfront to get a lower interest rate) from the locked rate, he or she normally can do that within a week of closing. However, that requires significant upfront money that the buyer who plans to stay in a house for only a few years is unlikely to get back.

If you are thinking about buying a new home and would like a consultation, call Laura Boyajian, aka, Laura B. today at 602.400.0008. You may also visit her website at:

http://www.historiccentralphoenix.com