View Full Version : Anyone in the mortgage biz??

04-16-2005, 04:20 PM
Here is my sitution - I am in the process of buying a second home (on a lake - very excited). I am closing in two weeks and have been working with a mortgage broker. I have filled out the paperwork, appraisal has been completed, credit run, etc... Decided last week to lock 5.875 on a 30 year conventional. Now, with rates dropping with the weak markets, is there any way to get out of the "lock" and re-lock at a lower rate? When initiating the process with the broker, I asked about the abiltiy to relock down and he said I could not. If things keep falling, I really don't want to re-finance immediately. Anyone know a strategy?? Thanks!

04-16-2005, 05:44 PM
I'm not a lawyer or a mortgage broker, but I have some real estate experience. You may be able to simply not close on the loan and be out the costs. And/or you can always refuse to close and let them sue you. They probably will not bother because it';s such a negative image for them. To keep your business they may go ahead and let you get the loan at a lower than the lock rate. It would be the same as paying an additional point or portion of a point on the cost of the loan.

If you pay a bit more up fron to release the lock you still wind up with a lower rate and they keep your business.

A good real estate or business lawyer might be worth the $150 to $200 he'd charge you for a letter and a phone call.

Keep us posted.

04-17-2005, 08:39 AM
In the Real Estate Industry but not a Mortgage Broker. I can tell you 1st hand you bet it can be done. When we bought our house the day of the closing the mortgage company called and said our rate was going to change slightly and oh, by the way you are going to have to pay 2 points at closing. We called the builder and our realtor and said looks like it will either be a dry closing or most likely, no closing. Then called the mortgage company back and told them either they fix it or we walk. Point in telling you this until AFTER the closing is taken place, nothing is bound. The mortgage company will begin the binding process before a closing but it cannot be completed until the day of closing. I bet if you tell the mortgage company you are going to start "shopping around for better rates" his tune will change really quick.

04-17-2005, 08:44 AM
If you are in the Chicagoland area, I can refer you to a great guy that should be able to help you out!

Dennis Nolan, Attorney at law

Good guy, and he specializes in real estate law. Good luck, and let me know if you use him.

04-18-2005, 11:27 AM
Ask for Rob and tell him Mike told you told you to call. He is a good guy.