Posted on: 03rd Jul, 2010 10:36 am
if you lock in your rate for lets say 60 days, and at the time of closing the rate is LOWER, is the institution obliged to give you the lower rate?
Not only are they not "obliged" to give it to you, most cannot give it to you. That is what the word "locked" means. I'm sure some people will tell you they have free float downs and what not, but the bottom line is that anyone that offers that, prices it into the original rate. Ask yourself this question, if after 60 days rates are up, are you obliged to pay the lender the higher rate?
There are some banks that will work with you and lower your rate. However, it may not be the market rate. Somewhere slightly above.
