Posted on: 09th Sep, 2010 11:11 am
We are refinancing our home and after submitting all documents on a timely manner and properly, the underwritter has not given an ok to proceed with the closing. The lock rate is due and We keep asking for updates from the mortgage agent. He says he is waiting for the underwritters answer to close. Are we going to lose the rate we were locked because of this? The agent or the mortgage co VP don't have any answers. All we get back is an "I don't know, that's a very good question".. we are sick of these guys
Hi guamanii,
Once the rate lock period is over, you will lose the rate. If you want to continue with the mortgage deal, you'll have to go for another rate lock with your lender.
Once the rate lock period is over, you will lose the rate. If you want to continue with the mortgage deal, you'll have to go for another rate lock with your lender.
When a rate lock is expiring, one of two things normally happens.
1. Before the rate lock expires, the lender can extend the rate. When that occurs the rate could be the same or higher depending upon whether or not there is a cost to extend. Actually, there always is a cost, the question is "Who pays for the cost to extend the Rate?". That could be you or the mortgage company or a combination of the two.
2. Sometimes a rate can expire and the day after it expires, some lenders can lock at the same rate if the rate on that date is equal to or less than the rate and pricing that just expired.
Both above depend somewhat on how many days the rate has to be extended or relocked.
An answer from a mortgage company that is "I do not know" is not an answer. They know. Thye are simply avoiding the answer.
1. Before the rate lock expires, the lender can extend the rate. When that occurs the rate could be the same or higher depending upon whether or not there is a cost to extend. Actually, there always is a cost, the question is "Who pays for the cost to extend the Rate?". That could be you or the mortgage company or a combination of the two.
2. Sometimes a rate can expire and the day after it expires, some lenders can lock at the same rate if the rate on that date is equal to or less than the rate and pricing that just expired.
Both above depend somewhat on how many days the rate has to be extended or relocked.
An answer from a mortgage company that is "I do not know" is not an answer. They know. Thye are simply avoiding the answer.
