Summary: If interest rates drop after you've started refinancing proceedings, what are you options? If your lender hasn't dropped your rate, you should shop around for a better deal. Then talk with your refinancing lender and let him know you won't sign unless he can offer a better rate. And be sure to have your interest rate numbers straight before you talk.
Q: My husband and I started refinancing proceedings. We've signed good faith estimate papers and paid for the appraisal, but now rates have gone down again. We have not closed on the loan yet. Is it too late to pull out of this process and look for a better deal?
A: Rates have really dropped in the last few days. If your lender has not yet dropped your rate, you should shop around and see if you can't get a better deal. Then, go to your lender and tell him or her that you will not refinance the loan unless they can do better, in accordance with what's out there. But make sure you have your numbers straight before you have that conversation. And be prepared to walk away from your appraisal fee. Next time, try to get the lender to put all of the costs into the closing, so you don't have to pay them upfront.
January 1, 2005
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Comments
Liz Freeman says
You and your lender are not committed to a rate until you have locked you loan. If you have not locked it in, chances are your lender will have no problem getting you a better rate. Or if your lock included a "float down" option, it means that you close at either the rate you locked in, or the rate in effect at closing--whichever is lower.
Jenn@thinkglink.com says
@Liz Thanks for your comments and for contributing to the conversation. We've got lots of refinancing content at http://www.thinkglink.com/refinance