Hi in March we had a contract for a property at that time we applied and locked in a rate of 6.125% for 30 year fix no point no originating fee. The lock date was 3/31 and is good for 60 days. Then came inspection and everything fell apart due to a slab crack and settlement, we walked away from the deal.

In April we found another property and quicky had a contract, we called the lender and asked if a May 31 closing date is still good for the original loan application, she says she needs to change the sale price, the address, but she has to extend the 60 days to 70 days in order to keep the same rate (or else we looking at 6.5%) but that will cost us 0.25 points or about $1000. We agreed to the terms and signed the application.

One thing leads to another, my closing agent told me this week they cannot do May 31, because of a planned cruise, they must do it on May 26, I talked to the agent and seller and they are ok with this.

But now with May 26 it puts us back to the original 60 day locked period. The lawyer says I should not have to pay the 0.25 extension since it is no longer applicable, my agent says you might want to pay it anyways to avoid any sort of delays or contingency that may come up - what happens if when we get closer something comes up and we need an extension etc...

So my question is, should I call the lender and request the 0.25 points to be excluded because of the revised closing date? or should I let it go because of the additional work that she did (change address, change price, etc...) and she already extended it so to go back to 60 days is actually more work?

What is the "right" thing to do?

Thanks,

PF

If your loan funds during the original 60 day lock period the lender will not charge the 25 bps to extend. The extension should not even be requested until right before the original lock expires.

Is your Loan Officer telling you that you will have to pay this if your loan funds on the 26th? If so he/she is either mistaken or possibly trying to keep the 25 bps to pad his/her commssion. I hope it is the former but sad to say there are those out there who will do such things.