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lasater · May 25, 2003, 08:06 PM

I just recently refinanced my home (3 weeks ago).
I refinanced from 6.875 to 5.625%.

We do not close until the 29th, 4 more days.

Since I received the rate of 5.625, I've noticed the rates have dropped another 1/2%, and now down to 4.875 to 5.25 with not points (in my area).

I would like to know if it is possible to change the 5.625 percent down to the current rate (average 5.125%) ? Or at least get my broker to lower it, more ?

Everything has been signed but we have not closed the deal yet.
I have given the broker a $250 check for earnest or whatever you would call the deposit.

I could save another $20,000 or more by getting the interest rate reduced another 1/2%.
Is there a way I can get out of the current refinance situation or have them lower the rate before closing?

Thanks,
Rick

rkim291968 · Oct 23, 2005, 11:23 AM

Originally Posted by lasater

Everything has been signed but we have not closed the deal yet.
I have given the broker a $250 check for earnest or whatever you would call the deposit.

I don't know what you mean by "everything has been signed but ... have not closed the deal yet." Signing everything is typically the last step. If you explain the situation to the broker, (s)he may advise on what it will cost to you (0$, $250, or another refinance).

BTW, mortgage rates don't drop 0.5% in short-time period. Are you sure you are comparing apples and oranges? 4.875 without points appears to be too good to be true (Oct/05). Please check carefully.

clover23 · Mar 16, 2007, 04:13 PM

Originally Posted by lasater

I just recently refinanced my home (3 weeks ago).
I refinanced from 6.875 to 5.625%.

We do not close until the 29th, 4 more days.

Since I received the rate of 5.625, I've noticed the rates have dropped another 1/2%, and now down to 4.875 to 5.25 with not points (in my area).

I would like to know if it is possible to change the 5.625 percent down to the current rate (average 5.125%) ? Or at least get my broker to lower it, more ?

Everything has been signed but we have not closed the deal yet.
I have given the broker a $250 check for earnest or whatever you would call the deposit.

I could save another $20,000 or more by getting the interest rate reduced another 1/2%.
Is there a way I can get out of the current refinance situation or have them lower the rate before closing?

Thanks,
Rick

Hi, Rick! You can obtain a lower EFFECTIVE rate by paying more to the principle on your mortgage (use the same analysis that illustrated the $20k savings). Since you've already put money into this, the mortgage professional has leverage as well as you - you both can "walk away" and pursue other prospects/proposals. Why didn't you ask for a rate float with a lock on the "best rate scenario"? Probably because no one can accurately forecast future rates. This is a great deal NOW - if you cancel WITHOUT A RATE LOCK somewhere, how much will this ambivalence cost you if rates went UP 0.5%? This is the risk borrowers face...