Lender credit increased by $1k 3 days after locking mortgage rate. Withdraw/reapply?

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mesaverde
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Lender credit increased by $1k 3 days after locking mortgage rate. Withdraw/reapply?

Post by mesaverde »

I'm refinancing my home through Lenderfi, which had the lowest closing costs of all. By refinancing I'll save many thousands over the coming 10+ years because I don't plan to move. Tuesday I locked the rate. No fee was required and I won't need to get/pay for an appraisal, so I don't have any $ in the refinance yet (only time in gathering/sending documents).
As of today the lender credit on the same loan has increased by over $1,000.
In other words, an additional savings of over $1,000 in just a few days.
$1,000 is a lot of money to me. I contacted the lender to ask if there's any way I can receive the additional credit, and they said no.
What would you do in the situation... pull out of the deal and try to reapply? Or just continue as is? Any feedback would be much appreciated.
Last edited by mesaverde on Fri Jan 24, 2020 4:26 pm, edited 2 times in total.
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mhc
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Re: Lender credit increased by $1k 3 days after locking mortgage rate. Withdraw/reapply?

Post by mhc »

First thing I would do is contact them and see if they will give you the additional $1k credit.
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batpot
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Re: Lender credit increased by $1k 3 days after locking mortgage rate. Withdraw/reapply?

Post by batpot »

...you locked already?
Yeah, that doesn't sound right at all. Need to call them, and have them explain themselves.

Worth shopping around some more. I like zillow and bankrate, because you can get terms from a bunch of lenders w/out giving them any personal info.
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mesaverde
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Re: Lender credit increased by $1k 3 days after locking mortgage rate. Withdraw/reapply?

Post by mesaverde »

mhc wrote: Fri Jan 24, 2020 1:21 pm First thing I would do is contact them and see if they will give you the additional $1k credit.
I contacted them and asked if they would do this. The answer was no.
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Pegasus_RPG
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Re: Lender credit increased by $1k 3 days after locking mortgage rate. Withdraw/reapply?

Post by Pegasus_RPG »

Yeah, that's the risk of locking the rate. We know all about risk around here, don't we? :wink:

If the lender credit increased by that much, the interest rate may have decreased by 1/8 of a percent (0.125%) So you can ask about a float-down, if that's allowed per the contract you agreed on with the rate lock.

Otherwise, you just have to consider if paying another rate lock fee (and if there is no penalty fee for breaking the existing one,) is enough less than $1000 to make it worthwhile for you.
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batpot
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Re: Lender credit increased by $1k 3 days after locking mortgage rate. Withdraw/reapply?

Post by batpot »

Pegasus_RPG wrote: Fri Jan 24, 2020 2:10 pm Yeah, that's the risk of locking the rate. We know all about risk around here, don't we? :wink:

If the lender credit increased by that much, the interest rate may have decreased by 1/8 of a percent (0.125%) So you can ask about a float-down, if that's allowed per the contract you agreed on with the rate lock.

Otherwise, you just have to consider if paying another rate lock fee (and if there is no penalty fee for breaking the existing one,) is enough less than $1000 to make it worthwhile for you.
I've never paid a rate lock fee, nor had a penalty for breaking one.
If OP locked and had a GFE, this is lender playing games, and time to move on.
Topic Author
mesaverde
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Re: Lender credit increased by $1k 3 days after locking mortgage rate. Withdraw/reapply?

Post by mesaverde »

At this point I've only signed the loan estimate and have not paid anything (there is no fee for a rate lock and the appraisal has been waived).
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TropikThunder
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Re: Lender credit increased by $1k 3 days after locking mortgage rate. Withdraw/reapply?

Post by TropikThunder »

batpot wrote: Fri Jan 24, 2020 2:53 pm
Pegasus_RPG wrote: Fri Jan 24, 2020 2:10 pm Yeah, that's the risk of locking the rate. We know all about risk around here, don't we? :wink:

If the lender credit increased by that much, the interest rate may have decreased by 1/8 of a percent (0.125%) So you can ask about a float-down, if that's allowed per the contract you agreed on with the rate lock.

Otherwise, you just have to consider if paying another rate lock fee (and if there is no penalty fee for breaking the existing one,) is enough less than $1000 to make it worthwhile for you.
I've never paid a rate lock fee, nor had a penalty for breaking one.
If OP locked and had a GFE, this is lender playing games, and time to move on.
No, it’s the lender responding to changing market conditions. If the credit had declined by $1,000 do you think OP should pay more to make up for it? That’s always how locking a rate has worked, that’s what the word “lock” means (unless you specifically ask for, and usually that means “pay for” the ability to float).
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