I’m getting a $1M mortgage. I’ve gotten pricing from both institutions, and I’ve locked with Rocket Mortgage for now at 5.5% 10 Year ARM. In both situations, the rate was lowered because I have assets with them.
Here’s what I’ve been told:
The locked rate can be lost if I do not lock within 7 days. Presumably (?), I can just wait until the full 7 days are up, and if the rates go down, I can let the rate expire and re-lock. Does anyone know if I wouldn’t be able to do that?
BoA will match Rocket Mortgage if I get an official loan estimate.
Neither will float down but both will price match.
What’s keeping me from just locking one and floating the other? Then price matching?
A locked rate can’t be lost unless you don’t close before the expiration. Rates change daily, sometimes multiple times per day. Your bullet point 1 doesn’t quite make sense.
BoA will only match to a certain extent. They do have a renegotiation policy, but rate match is more effective. You need a locked loan estimate to get the other to rate match.
Almost all lenders operate this way. It’s interesting that you have assets with Rocket Mortgage.
@Asher
Definitely get a lock with one of the lenders and then negotiate with the other. I would take the route of locking with Rocket and then negotiating with BoA or Wells or any other bank that does relationship pricing.
@Asher
If you’re locked, you’ve got a Loan Estimate in your e-signature inbox to sign, as part of a larger Initial Disclosure Package. All lenders are required by law to give you a Loan Estimate within three days of application. Rocket and BoA are large lenders. You may find lower interest rates by talking to a local credit union. Once you have a Loan Estimate from one lender, you should take that to other lenders for a match or beat.
I just got a quote from Rocket and they used up all of the seller concessions in the purchase agreement to buy down my interest rate to match what I’ve got now. They’d have charged about $10k more in closing costs due to points being bought, and their rate after buying it down didn’t even match what I’m already getting.
I worked at Rocket for 5 years. If you don’t e-sign and turn in your docs within 7 days, the rate unlocks and there is an extra cost to re-lock. The rates through the Schwab channel are much better than the retail side.
Asher said: @Piper
Oh, that makes a lot of sense. Do you know how much the fee is to re-lock?
It’s a quarter point. Sometimes they will waive it, sometimes not. You can’t float down though. The rate would stay the same but the .25 point would be added to the cost. If the deal is the same as BoA, the process should go smoothly and their servicing is great. Although Rocket typically has worse pricing, the Schwab pricing is very competitive.