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Debt Relief – Insolvency – Bankruptcy Information » Mortgage Refinancing » What happens after the rate-lock period? I’m in the middle of refinancing my mortgage.?

What happens after the rate-lock period? I’m in the middle of refinancing my mortgage.?

I secured a rate that’s locked for 60 days, but it already passed 60 days. It looks like the rate has dropped since I locked it. The lender still hasn’t finished processing my refi (they explained that they had to work on those first time home buyers so that they can get the credit). What options do I have? Can I demand that the lender use the current rate? Or am I stuck with the old rate? Please advise!

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One Response to "What happens after the rate-lock period? I’m in the middle of refinancing my mortgage.?"

  1. RetiredDebtFree says:
    Well, they will want you to use the lock rate, even when rates have dropped. Of course, if rates had gone up they’d want to adjust. Here’s what I did years ago when the rate declined after the lock …

    NEGOTIATE

    I calculated how much the lower rate would save me over three years. Then I calculated the expense of applying for a mortgage at the lower rate at a different lender. It was worth it to find a new lender, so I simply negotiated the lower rate. I was willing to spend the money to change lenders in order to get the new rate if they did not lower my rate. They lowered the rate.

    I was negotiating from a position of strength … I had great credit, 20% down, and the facts on what the lower rate was going to save me over the next 3 or so years. State the facts, be willing to take your business elsewhere.

    Use bankrate.com mortgage calculators to figure your payment with the locked and new rates. Take that monthly difference and multiply by 36 or 48 to get the 3-4 year savings. Print that detail out to show the lender.

    Know the cost of taking your business elsewhere. If it’s $400 in fees paid again, but you’ll save $800 over 4 years, ask for a lower rate. Split the difference if you can’t get the lowest rate.

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