I am refinancing my home. All my paper work is done and ready for the title company. I have not locked on a rate yet. The feds have their meeting on the 31st of October and it is expected to drop interest rates. Can I lock my loan the day of closing? Which I would like to close on the 31st.
2007-10-25 13:43:34 · 6 answers · asked by tonjuark 2 in Business & Finance ➔ Renting & Real Estate
No - that is too close to the time of closing. You may be able to hold off until after the 31st to lock, but your closing date will have to change.
And you have to be careful that your approval does not expire. Most of the time, you only have a 30 day window to work within.
Most of the econonic factors indicate that the fed will NOT drop rates on the 31st.
But if you still think that they will... Contact your loan officer and ask what you can work out to try to take advantage of the expected rate drop. IF your lender expects the Fed rate to drop, they may already have figured this into their rates.
And remember, many mortgages and programs are not even based on the Fed rates at all. Many mortgage rates are based on the LIBOR and other economic indicators.
2007-10-25 19:00:24 · answer #1 · answered by Hatlady 3 · 0⤊ 0⤋
Since you don't have a rate lock, the rate will be determined when the loan is funded, a day or so prior to closing. If you want to lock, you'll have to ask several days in advance of closing.
Don't expect a reduction by the Fed to impact mortgage rates immediately, if at all. The rate that the Fed has been tinkering with lately -- the overnight rate -- has little or no impact on mortgage rates.
2007-10-25 13:51:53 · answer #2 · answered by Bostonian In MO 7 · 1⤊ 2⤋
No way your paperwork can be all done without a rate lock, how could the Note, Final GFE, or TIL be drafted without a rate?
Your lender won't (can't) order final docs without a rate lock.
How far in advance must you lock is lender specific and the time changes with work flow.
2007-10-25 14:10:27 · answer #3 · answered by Anonymous · 4⤊ 0⤋
I agree with Bostonia he is correct it can be done just before or a few days before closing and dont expect rates to go down and the risk you are incurring could be high if there is a chage in policy before you close look at the dates the feds meet and then listen to the news on the forecast for their action if they say they will increase lock in your rate just on speculation banks increase rates to consumers.
2007-10-25 14:32:26 · answer #4 · answered by Fabio G 3 · 1⤊ 2⤋
that is as much as you. I many times recommend to fasten appropriate away. If the cost drops lots interior of two weeks earlier you close up, then you definitely might desire to continuously have your guy or woman loan oficer take your guy or woman loan to a various financial employer and get a greater suited value. FYI: you will possibly no longer have the means to fasten in yet in the journey that your guy or woman loan isn't unconditionally approved.
2016-10-14 01:29:56 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Listen to Unis, she is 100% right on.
2007-10-26 01:45:10 · answer #6 · answered by Anonymous · 0⤊ 0⤋