Mortgage Rates News

How does locking a mortgage rates work?

If you lock your mortgage then 1 week later rates go down Am I re-able to re-lock my rate with no penalty.

Public Comments

1. No locked is locked. How would you feel if you locked in 6% and the rate climbed the next week and the Lender said lets do it again at 7%
2. NOPE That's the WHOLE point of LOCKING. Didn't you read the Lock Document you signed? READ it now. You get that rate---unless you start whole loan application over again.
3. Man, people sure like to spew bad information on here. Most large lenders have a rate renegotiation policy. Its not always published and its something you usually have to ask about. Lord knows I dont mention it when locking in a loan because its more trouble explaining than its worth. Short answer: if there is big enough of a rate drop, lenders will re-hedge your rate with the fed reserve and tack on a hefty fee for the process. (ours is .5pt) so basically you need rates to drop 1pt to save .5pt. If you notice the average fixed rate take a huge drop on bankrate.com give a call and see what the lender will do. The policy is in place to protect people from going and re-locking elsewhere. so yes you can, no not for no penalty