Can I start a new mortgage loan?
I have a problem with the seller’s second lender and didn’t get to close two weeks ago and now my 45 day locked interest rate is about to expire next week and I see that the today and tomorrow’s rate might be lowered than my locked and might be lower than next week’s rate.
I can float-down once but my lender’s rate is always higher than anybody else. As an example, I contacted two other lenders, they offered $ 4.125 for today but my bank is at %4.35.
When my rate expires next week and the rate is higher than today’s and my current locked rate, either I have to pay penalty to keep my locked rate or get next week’s rate.
So my question is
Q1: is it possible for me to start a new loan with another bank? I believe I will have enough time to process a new loan, ~3 weeks or so.
Q2: Am I bounded to my current loan and would there be any penalty?
I asked my loan officer but she wouldn’t answer these, other than we will close soon and I can float-down once (but her float-down rate is higher than other bank so basically she says her bank rate has n’t changed even though other banks’ rate fell)
I spent about $ 1000 for inspection & appraisal fee.
getting .125-.25% lower rate will save me more than $ 1000 I believe.
Can you advise if I am able to walk away from my current loan and start a new one with another bank??
Sorry. I meant %5.25
%5.5 for 30 years??
My Wells Fargo is %5.125 and SunTrust is also %5.125.