Refinance Closing
I am about to run out of the my 09-day rate lock on my mortgage refinancing. The bank people messed smth up and it took them longer than expected. They promised to set up a closing within 3 days before my rate lock expires but have not done so. I am calling my mortgage officer…
I am about to run out of the my 09-day rate lock on my mortgage refinancing. The bank people messed smth up and it took them longer than expected. They promised to set up a closing within 3 days before my rate lock expires but have not done so. I am calling my mortgage officer and she is not responding. What is going happen? Am I going to lose $700 fee for locking a rate? Am I going to start all over again in this process? Why are they avoiding me, does it behoove them it to let the rate lock expire?
Any help would be appreciated.
Thank you.
Are rates better or worse than when you locked? Extensions are expensive these days. 1-5 days on banker pricing costs .15pt, 5-10 cost .30pt Either they will extend the rate at a cost that either you or the bank will eat, or you can let the rate expire and get what is called “Worse Case Pricing.”
Bascially if the rates expires most banks hold you to worse case pricng for 30 days after the rate expires. If rates are better than when you locked they will give you your old rate if they are worse they will give you the worse rate.
You need to speak with your loan officer and discuss these options. If it expires and 30 days have passed then you can most likely relock at the prevailing rate.
-Adam Dahill
adahill@approvedfunding.com