A lender explains how clients can lower their locked-in interest rate if market rates drop before closing. They shop multiple lenders to find the best deal and let you switch or adjust as conditions change.
Finding ways to help our clients save is super important to us. So here's yet another way we try to help them do that. So normally when you lock an interest rate in with the lender, you're locked in for better or worse. If rates get better or worse, doesn't matter, you still have your initial interest rate locked. What we do is we obviously shop 200 plus different lenders, as you already know, to find your best deal on day one. But then the market's been crazy volatile. Sometimes the rates are changing by a quarter percent day by day. That's crazy huge swings in the market. If things do get better, eventually they will. We can actually float you down to a lower rate as long as rates have dropped by at least a quarter percent from where you originally locked in at. And this happens before the closing of the loan. Or if the market really gets better drastically, we can unhitch from the original lender, keep all the progress, the documentation you have collected with us, and plug you into yet another lender of ours, if the market just calls for that, and complete your loan there. We do need at least 15 days transfer, some paperwork, transfer appraisal. But this is a way you get the best of both worlds. Best rate on day one, best rate before closing.
