| Name:
Andy
Title of Question:
rate lock |
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Question: I am buying a house and was given a rate by my broker which I locked. Then I was given a quote of a better rate from another lender. I told my broker about the quote and he told me after checking it again he can get me that lower rate. I was just wondering what my lock period would be. Will it be 30 days from the original lock or will it be from the time that he rechecked the rate? He is telling me that the rate is locked for 30 days from the first lock date. This gives me the impression that he didnt relock the rate at all but is giving me a rate that he could have given me all along. Am I wrong or am I just confused? The reason I am concerned about it is because I need a couple extra days to close on the house. rnrnThanks for any help you can give me |
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Name:
sthfl2000
| Date: April 2, 2006, 12:21 am
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Answer:
A "Rate Lock" is exactly what it says..you can't lock in a rate and then change it. Most likely what he might have done is shopped it around some more and locked a better rate with a different lender. On both locks, he will have received a Lock Confirmation from the lender..simply ask to see it if you have any doubts. The lock period starts the same day it was locked. Good Luck!
Www.MortgageTeamFlorida.com |
| Name:
Sarah
| Date: April 25, 2006, 2:51 am
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| Answer:
There is something called 'yeildspread'. Your broker is charging you a fee for probably 2%-4%, this is called a 'loan origination' fee. Yeildspread is another charge they can give you that is included in your interest rate. Let's say I can qualify you for a rate of 6.5% at 'par pricing', but I can also offer you a rate of 8.5 with 2% in 'yeildspread'..I am not only charging you that 2%-4% as my up front fee, but I am also receiving that additional 2% 'on the back end'...So ultimately you mortgage broker is making more than you know. If you would like to work with another broker/loan officer you may email me. We only charge 1.5% up front and there are no points in yeildspread. We are a straight up and honest company and tell you everything you need to know. We can get your loan funded in a very short amount of time..Our best time is 2 days with the 2nd coming in close at 4 days. We develop relatioships, not transactions. You can check us out online if you'd like at www.916now.com
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