Need help QUICK RE: lock-in rates

Here's the deal:

When we were pre-approved, the rate we were at was 5%. We went ahead with the process and we're thisclose to being done.

We need to lock in at a rate. Right now- according to our broker, rates are above 5%. In order to get our rate of 5%, we need to pay an addition $918.00 to buy it down to 5%. If we don't, we have to start the whole process over again to get approved at the higher interest rate.

I spoke to my dad to ask him what he thinks we should do. He called another broker who said he could lock us in at 4.875%- this is without having all of our info.

If we go with another broker we have to start everything over again and I feel like we're so far in, but we could *potentially* save $1000 bucks and have a lower rate.

What should I do??

Message edited 4/5/2011 1:21:48 PM.

Re: Need help QUICK RE: lock-in rates

I'd check and see what the other broker has to offer. His rate may include points as well - it's best to look at and compare the GFEs.

Re: Need help QUICK RE: lock-in rates

Tell your broker that you'll go elsewhere unless he can get you a lower rate. Bethpage Federal CU is at 4.875% today too.

Especially if you KNOW a different broker can get you a lower rate, then your broker should be able to as well. That's just BS in my opinion. It won't take long to start over because you have all your paperwork in order already.

Re: Need help QUICK RE: lock-in rates

To save $1k I would definitely start over again with someone else... but when do you close on your house? You can float the rate for a while to see what it does, it's nerve-wracking watching the rates but could be worth it. Although I would lock in at 4.875 if I was offered that rate!

Re: Need help QUICK RE: lock-in rates

if you were to get the lower rate without additional points... you would be saving alot of money in the long run on interest... I would talk to this other guy!

Re: Need help QUICK RE: lock-in rates

I'd get a Good Faith Estimate from the other broker and tell the current broker about the new deal your getting.

Make sure that you are comparing apples to apples and neither offer is charging you pionts. If the new offer has higher closing costs that you have no choice but to bulk into the loan, it could be not as good a deal as it looks.

If the new deal is truly better I wouldn't worry or hesitate to play hard ball.

Re: Need help QUICK RE: lock-in rates

I would get a gfe from the other broker and compare them. The best way to compare them is look at the apr and whichever one is closest to the rate that you are actually paying is the one that you should go with.