Monday, August 8, 2011

Renegotiating your mortgage rate lock...

This blog could also have easily been titled "Always, always ask, even if you think its the most ridiculous question in the world."

We locked our interest rate a couple weeks ago, right when it looked like Congress might not get their act together and pass the increase in the debt ceiling.  Rates were starting to rise a little bit, and we just didn't want the uncertainty, so we locked at 4.75, with 0.05 discount point.

And don't you just know it, rates went down right after that.  Like, down to 4.25, which some of you lucky bloggers managed to snag!  While we are still happy with 4.75, we were a little sick that we had guessed so wrong.  4.5% would be $50 less per month, and save $10,000 over the life of the loan.  4.25% would save even more - I don't even want to do that calculation.

So, BF asked me if I thought we could change our rate.  "No."  I said.  "Its called a lock for a reason.  We've locked it.  We are screwed."  But, I agreed that it couldn't hurt to ask.  And so the next day, BF called our mortgage guy and renegotiated our rate.

Did you hear that internet?!  It IS possible to change your rate lock!

I don't know exactly what BF did or said, but mortgage guy agreed almost immediately to lower it to 4.5%, with the same discount rate.  The going rate that day was less than 4.5, but I don't think it had crept down to 4.25 yet.

I was totally blown away.  I would have never bothered to even call and ask such a silly question.  And now we are saving $50 a month!

I thought he might not come through with the paperwork, but he did, and today we mailed back the rate lock paperwork with the new rate.  Absolutely amazing.

So if you are out there, watching rates plummet and kicking yourself in the ass for locking too soon, it doesn't hurt to call and ask!


  1. Great Advice! The worst thing that can happen is they say "no", right? lol I'm glad it worked out for you!

  2. Great advice! Thank you! I probably would have never said a word... glad you got a happy ending. :)

  3. Now I wish we had waited a few days to renegotiate! Rates are down to 4%!

  4. and ask you can't hurt to ask although you might be pushing it this time.

  5. No luck for us. They said it couldn't be done. Thanks for for the good advice though. We locked in because of the debt ceiling thing. It could have gone either way. It was good to try and at least in the future we aren't kicking ourselves for not trying!

  6. I agree. There’s no harm in asking a question especially when it comes to your mortgage. Re-negotiating your terms is really possible. Good thing your boyfriend inquired about that to your mortgage guy, or else you’d be stuck with your current rate. This is a great deal for both of you!