question: locking interest rate

MrsMoxy

Rates were steady and then started to increase about two weeks ago. At that time, our mortage lender notified my husband that we should lock before they went higher. My husband verbally agreed. Papers to lock the rate were subsequently sent to us via mail while hubby was out of the country. He's back now and rates have dropped again. Since we have not yet signed the documents to lock in our rate, can we lock at the current rate? Or are we stuck at the higher rate since my hubby made a verbal agreement a couple weeks back? We asked our mortage lender, and he's "checking"-- but it doesn't sound promising. Do any of you have experience with this?

jennylove1084

I thought you could lock up to three times before you close?

USER876

As far as I am concerned, if you did not sign any documents for a rate lock, you are not "locked" or committed.  Some lenders, as a courtesy, allow you a one time relock if rates drop.  Ask this question and see what your options are once you lock.  Also make sure the lock will last the term of the closing.

PeanutsCL

If nobody signed the paperwork, you're not locked. Ask for a new rate lock paper to sign with an updated rate lock on it.

 

Just curious - what numbers are we talking about? I locked in at 4.25 in June and it hadn't changed by October when we closed! 

MrsMoxy

The rate was 4.25, but dropped to 4.00.