Posted on: 21st Aug, 2010 05:18 pm
If our rate lock expires, but rate have gone down, will we get a better rate?
Welcome krkellyrob,
If your rate lock has expired, then you would be able to lock your new rate depending upon the present market rates. If the market rates are low now compared to what you have received earlier, then you would be able to get lower rates now.
If your rate lock has expired, then you would be able to lock your new rate depending upon the present market rates. If the market rates are low now compared to what you have received earlier, then you would be able to get lower rates now.
When a rate lock expires the lender usually can renew the rate lock at same rate but not lower if the renewal of the rate lock occurs within 30 days of the expiration and the rate at that time is equal to or lower than the orginal lock.
After 30 or 60 days, the lock can be redone at the same lender at the rate at that time, even if lower.
The rate can be lower if it is locked with a DIFFERENT lender.
It may also be relocked lower with the existing lender if the rate is so much lower that the lender has a FLOAT DOWN policy where the diference can be split betwenn you and the lender---in other words, you get a lower rate but not as low as it could be with a new lender.
After 30 or 60 days, the lock can be redone at the same lender at the rate at that time, even if lower.
The rate can be lower if it is locked with a DIFFERENT lender.
It may also be relocked lower with the existing lender if the rate is so much lower that the lender has a FLOAT DOWN policy where the diference can be split betwenn you and the lender---in other words, you get a lower rate but not as low as it could be with a new lender.
