What happens when a rate lock on a re-finance expires?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
What happens when a rate lock on a re-finance expires?
I applied for a re-finance and locked in a rate of 4.25 with a 30 day lock on 6-25-11. It has been 75 days and have not gotten a closing date yet. Was told rate lock was extended with no charge to me. Rates have dropped since original lock to 3.75. Should I get the lower rate?
Asked on September 5, 2011 under Real Estate Law, Illinois
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
If your rate lock has been extended for the purchase or refinance, you need to find out how long the rate lock has been extended to. The rate lock for a loan is typically unilteral. Meaning, the lender is locked in on the loan's interest rate but you are free to go elsewhere for another loan.
With falling interest rates where you can obtain a loan at 3.75% it makes sense for you to try and lock in a rate below the 4.25% that you supposedly have locked in. If you have a mortgage broker assisting you on the loan, you should call him or her for direction on how to proceed to get a lower loan rate.
When a rate lock on a refinance expires you can no longer get that agreed upon stated rate of interest.
Good luck.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.