I applied for a loan that I was told was locked in at 6.95% and now the day before we were supposed to close, the lender is changing the rate to 7.88%.
2006-11-07 14:01:31 · 11 answers · asked by Amy H 1 in Business & Finance ➔ Renting & Real Estate
you only have so many days after you sign the app to do the mortgage with the locked in rates
if you were in that timeframe I don't see how they could put the rate up
2006-11-07 15:53:12 · answer #1 · answered by Anonymous · 0⤊ 1⤋
Answer is yes. After you are pre-qualified the lender will give you an specific time to close ( usually 30 days), if you don't close by then the lender can change the rate; remember that the market is constantly changing so if rate goes up in that period of time they will increased it.
If you have papers check the days it was supposed to be lock
for, otherwise tell them you don't want to close, they might be able to work something out for you.
2006-11-07 23:03:36 · answer #2 · answered by Rod 3 1 · 0⤊ 0⤋
Yes they can. Locks are not guarantees and often loan officers and lenders lure you in with a low rate, then increase the rate right before closing.
Dirty, but that's how they get an edge over the competition. They promise you these low rates to get your business.
You can go to your loan rep and try to plead your case, ask him to try harder. They have yield points which allow them to make money on the back-end of the loan, if he's a good person he'll sacrifice his point to lower your rate. Other than that there's not much you can do, it's probably to late to walk away from the loan.
I'm a loan officer, so I know.
2006-11-07 22:15:14 · answer #3 · answered by Anonymous · 0⤊ 0⤋
It is possible that your rate was only locked for a certain number of days and your closing occurs after the expiration of the lock. If that isn't the case I would be very suspicious of the lender.
2006-11-07 22:06:49 · answer #4 · answered by David W 4 · 0⤊ 0⤋
When you lock in an interest rate it is only good for a specific time and if the time has passed the lender can indeed raise the rate.
2006-11-07 22:19:10 · answer #5 · answered by kgreives 4 · 0⤊ 0⤋
This is the kind of thing that gives us a bad name. If it's a refinance, feel free to use another company. Why did it go up? You didn't qualify for the lower rate? If so, it stinks you found out last minute but "it is what it is". If it was a mis-quote, and totally on the Loan Officer, have him use his commission to buy down the rate.
2006-11-08 06:49:09 · answer #6 · answered by Anonymous · 0⤊ 0⤋
If he said it's locked...then it's on paper in a contract....if not then they can change it how ever they want....didn't read the fine print?
Thats why it's best to qualify for a loan 1st before looking to buy.
2006-11-07 22:09:47 · answer #7 · answered by Anonymous · 0⤊ 0⤋
The lock on your rate must have expired. So it would adjust to the current market rate. Find out if this is the case....
2006-11-08 10:26:55 · answer #8 · answered by boston857 5 · 0⤊ 0⤋
yes he can. rates are always changing on a daily bases. to lock on a quote. you must sing papers on a certain quote. by the end of the business day.
2006-11-07 22:11:06 · answer #9 · answered by richfraga 7 · 0⤊ 0⤋
Yes
2006-11-11 18:25:34 · answer #10 · answered by DRIGLAZ 2 · 0⤊ 0⤋