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March 19, 2007

Interest Rate Lock and Negotiating with Mortgage Broker

Okay, so I locked in at 6.125% with 0 points to purchase my new Brownstone in about a month. I am pretty happy with this rate, but would love for it to be at 6.0% or lower without having to pay points. Anyone ever negotiate with a mortgage broker after the rate has been fixed? What worked? I really like the broker, so I don't want to play games, or is that what's expected? Thanks.

Posted by anon at 12:47 PM | Comments (7)
Categories: Mortgage

Comments

Once you lock rate, that's what you get. However, some lenders will allow you to adjust the rate if, by the time your closing comes, the rates have moved lower by 75bps. I was able to do this about 2 years ago. Locked rate at about 5.5, rates moved to 4.875. The lender let me relock at 5%. They charged me the .125 (in rate)

Posted by: NewStoner at March 19, 2007 1:48 PM

Is that rate for a 30 year fixed or an ARM?

Posted by: Anonymous at March 19, 2007 1:50 PM

30 yr. fixed

Posted by: Anonymous at March 19, 2007 1:56 PM

I'm not sure what the terminoligy is but we has a fixed rate through a bank. We switched to a different mortage at a lower rate (refinanced) with no points through a different lender.
Or original bank later obtained our mortage again from the new lender.

Posted by: Anonymous at March 19, 2007 2:32 PM

Who did you get that rate with? Was it for a jumbo loan?

thanks

Posted by: Anonymous at March 19, 2007 2:53 PM

conventional

Posted by: Anonymous at March 19, 2007 3:06 PM

If you have time enough left on your contract, go shopping.

Try your bank for starters. Tell them you already have a locked rate and ask them if they can beat it. Many institutions will bend over backwards to keep your business.

Also, beware - mortgage brokers often will offer "zero-point" locked rates that carry exhorbitant locking fees... and "zero points" is a myth... they are typically paid at least 1 point "by the lender", however this fee is simply recovered by the bank through a higher rate.

Posted by: Anonymous at March 20, 2007 11:00 AM

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