Does anyone know how this works. Buying a home and when we signed the purchase contract it was 6 percent, but then a couple days later the lender called a said we needed to lock in a interest rate because it just jumped from 6 to 6.375? Does this sound right? Any help will be appreciated.
2007-12-09 13:15:43 · 4 answers · asked by justintime 2 in Business & Finance ➔ Renting & Real Estate
Very possible. Rates are constantly changing and we did see an up-tick in long term rates late last week. You can ask for a new good faith estimate and just make sure all fees are the same as before to validate it if you'd like.
Including a link about how the market affects rates. The last couple weeks have been a bit weird with regards to rates and this article helps explain it. Best of luck!!
2007-12-10 02:39:49 · answer #1 · answered by Quicken Loans 5 · 0⤊ 0⤋
Yeah this sort of thing happens all the time. Rates change everyday, even though most of the time you can see a rate hike coming, you can really never know for sure.
Be thankful though that you are working with a lender that openly told you that rates had gone up and you should lock it at a certain rate. Even though it went up, I've seen alot of people hear one rate and they dont hear about the new rate, that has gone up, until they get to the closing table.
2007-12-09 21:27:33 · answer #2 · answered by mikeyl1212 1 · 2⤊ 0⤋
That is a distinct possibility that the quoted interest rate could rise 3/8ths of a point within hours, let alone days.Much of the movement is based on the federal reserve interest rate to lowest risk user banks. The Feds also regulate inflation, depression slowing economy by changing the rate depending on the circumstances.
2007-12-09 21:29:29 · answer #3 · answered by googie 7 · 2⤊ 0⤋
your getting ripped off. check the APR to the rate of 6% it should not be much higher then 6.15% APR.
The broker/banker is charging you YSP(money in the back), which raised your rate
Good Luck
2007-12-09 23:51:03 · answer #4 · answered by Anonymous · 1⤊ 0⤋