Question regarding mortgage rates

My husband and I are closing next week. We are just so excited!

But today, we get a call from our mortgage broker and he said that in the time it took our mortgage to clear to close, the rate rose a half a percent....

Now, I know we could have paid to lock before we were clear to close, but our mortgage broker talked us out of it....saying that he would call us if he saw anything drastic happening with the market.

Then we get this call today...

I am beyond fuming! I mean, he said he'd call if he saw some changes in the market.

Do I have a right to be furious? I feel like spitting nails right now! If he had called us, we would have locked.

Thanks for the vent ladies.

Re: Question regarding mortgage rates

I can't believe your broker was going to charge you to lock. That is insane. Again, why we went the bank route.

How did he leave it?

Re: Question regarding mortgage rates

Well, we are locked now. It would have cost us to lock before we were clear to close. Now that we are clear to close with the underwriter, we could lock for free.

I feel really, really cheated with the whole thing.

Re: Question regarding mortgage rates

rates have been "creeping" (my DH word) up for a few months-

I don't get why he wouldn't lock the rate- it makes no sense

Re: Question regarding mortgage rates

Yes, the rates have been creeping up. We had a lock on a 6.0 rate, but we may lose it due to some issues with the house we are buying and the closing not taking place.

Your broker probably should have called you sooner, but we have been watching this stuff for awhile, and the rates can and do change overnight. So if you see a rate you like, and the timing is good, lock.

You shouldn't have any charge for the lock though. There is a charge if you need to extend it beyond the timeframe offered (usually 30 days), but no charge for the initial lock.