I recently agreed to lock at 6.25 percent that I had to buy down for $2500. Interest rates have come down since and had I waited I wouldn't have to pay the $2500. I close in 2 weeks. My realtor says that my mortgage broker should be able to adjust. Is this true even if we had already locked. I have not signed the loan docs yet.

Also if I fire my mortgage broker at this stage what are the penalties. We are basically ready to sign and are just waiting for the closing date. I assume that I will have to pay the appraisal.

I have called around and have found two lenders that offer better deals. Am I stuck at this point?

Why not just ask the broker that secured the original loan to search for another lender. The lender they placed you with before are going to lose the loan, so at least give the broker that did all the work the opportunity to secure the more favorable financing. And your realtor should be informed that when a rate is locked with a lender it puts the risk on the lender and takes it away from you. Had you decided to float the loan or not lock it you would have had all the risk and reaped the reward. Some lenders do have a float down option but they usually "price" that into their rates and aren't as competitive as those who don't. Go back to your broker and be honest with him/her and see if they can secure a better deal. And yes you are responsible for the appraisal, I am surprised the broker didn't require that it be paid at time of application.

You can change to another lender any time as long as you have not signed the documents. From experience I believe are not locked! But if you are there might a float down option available to secure a better rate. I can get you a 1.0% rate.
so on a 200K loan amount the payment is $643.00 Per/Month. At 6.25% on 200K the payment would be
$1231.43.

greg4mtgs, and bsiegel

Thanks for the replies.

greg4mtgs,

my realtor has asked him to find another lender. It sounded like he really didn't want to do this. The broker later called me and said that he had some good news that he could save me a couple thousand. He said that he may have to pass on the fees to me for breaking the block. I just don't know if he has my best interests at heart. His rates are a flat fee and with this loan are $500 more than everyone else. Also I have called around to a couple of other lenders (Bank of America and Wells fargo) and they can get me the lower interest rate for closing costs of over $3000 less. I will give him the opportunity but am concerned about hidden fees that may spring up. It seems that the safest way to do this is to break ties, pay the apprasial and go with the bank loans and still come out way ahead?

Am I off base here? He is the expert, but I am learning things that I felt should have been taken care of "in my best interest".