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Can a lender change my rate the day before closing?

by mattglassman from Dallas, Texas. Aug 2nd 2013 Reply


William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,726 contributions

If your rate was locked in, then no.. they cannot.. they would not be able to change your rate without your permission.. Also, current laws require that if your rate (APR) goes UP more than 1/8th of a percentage point, then you cannot close until 3 days have passed.. without knowing all the details, it's hard to say if your lender is pulling a fast one on you or just following the rules.. depending on whether he's a broker or banker, and depending on who is paying his compensation , you or the indirect lender, if it was necessary to extend your rate lock, and that fee had to be paid by you, (per the rules), and that additional fee changed the APR by more than 1/8th, then he's really not done anything wrong.. it's just hard to say without seeing everything.. but you should not hesitate to call your lender and ask him directly.. if you don't feel confident in his reply, then ask to speak to his supervisor.. that simple.. .. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

Aug 2nd 2013
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Adrielle Edwards (AdrielleEdwards)
#903 ranked lender in California - 96 contributions

Not if your rate is locked. Locks do expire, however, if the APR changes more than 1/8 of a percent, you will have to wait an additional three days before you can close the loan anyway.

Aug 2nd 2013
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No they cannot - any time there is a change of circumstance (i.e., rate, loan amount or anything on the loan that affects the APR) - you are required to wait 3 business days before you can close for this very reason, so that you do not get taken advantage of.

Aug 2nd 2013
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Carlo Sanchez (MortgageLendingPro)
#0 ranked lender in Utah - 1,163 contributions

Yes!! It can go down the day before and not have to redisclsose, but it can also go up and Maybe not have to be redisclosed. More info is needed on what is happening

Aug 2nd 2013
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Pete Bass (PeteBass)
#30 ranked lender in Connecticut - 476 contributions

It's a hard question to answer without all of the specifics of your loan- The short answer is no if the loan is locked. If the lock expired or the loan was floatedand not locked then the rate could change. A change in the rate would require a add'l 3 days to close. Need to re disclose if the APR changes by an 1/8th-

Aug 3rd 2013
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Nikitas Kouimanis (MrMortgage)
#7 ranked lender in New York - 117 contributions

Yes it can change if A and only if they do a change of circumstance if your (APR)meaning your annual percentage rate increased by an .125 of a percentage and they would have to do a change of circumstance in that case. But that would mean that you were not locked into to a rate and from what I am gathering it doesn't seem that you were under that impression. If the (APR) went down it does not matter but that is not your case here. Please call me or email with any questions or concerns. The best thing to do is work it out with them it makes no sense to start the process over but if you need advice I am here. 516 469 6262 Or nikitas@nyfha.net. Thank you

Aug 4th 2013
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Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 3,960 contributions

Technically, once your mortgage interest rate is locked, it is locked, and should never change if you close your mortgage loan within the lock period. With that said, your rate can change under a variety of circumstances. Everything from the lock has expired, to the discovery of new and different information. Did your program change? Did your loan amount change? Whenever a legitimate change in circumstances effects the loan, the lender is required to redisclose the change to you. if you are not in agreement with the change, the loan application will simply be cancelled. www.MetzlerMortgage.com - Serving all of MN and WI.

Aug 4th 2013
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Byron Pike (Byron_Pike)
#59 ranked lender in North Carolina - 16 contributions

No, they would have to do it at the very least 3 days in advance.

Aug 2nd 2013
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Elden Lewis (elewis_409_299)
#42 ranked lender in Indiana - 223 contributions

No, the lender is required to re-disclose any rate changes at least three days prior to closing.

Aug 2nd 2013
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James Mazzola (Mazzola)
#110 ranked lender in New Jersey - 313 contributions

If your rate was locked in, then no.. But any change over .125% in APR has to be re-disclosed and you have to wait 3 to 7 days

Aug 2nd 2013
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David Sanders (David_Sanders)
#809 ranked lender in California - 59 contributions

If your rate is locked in then no. If your lock expired then Yes the rate will be refigured or you will have to pay additional points to cover for breaking the lock. IF the APR changes more than 1/8 of a point then you would have to receive new disclosures and wait 3 additional business days before closing. Doesn't the loan officer disclose any of this to you? If it really changed, you should have been notified immediately and the reason why... This is why I do MOST the work on all my loans. I know exactly what is going on at all times. Be careful who you choose.

Aug 6th 2013
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Mary Chris Gallo (MaryChrisGallo)
#48 ranked lender in Minnesota - 116 contributions

Not if you were locked in, they can't. There are so many variables. Did your loan program need to change at the last minute? Goodness; there must be some type of BIG challenge that would require a rate change and if there was your lender should be discussing it with you in detail. A rate change the day before closing is a HUGE red flag that something wrong happened or is happening. I would be contacting your originator and finding out EXACTLY why this is happening.

Aug 2nd 2013
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Dave Metsker (DaveMetsker)
#37 ranked lender in Oregon - 2,317 contributions

Not if you have an unexpired lock.

Aug 2nd 2013
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Generally no, but if the loan was not locked in then it would be subject to change. At this point, you should have received a notice stating that the lock on your mortgage loan has been initiated.Bryant682-292-8839

Aug 2nd 2013
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Jason Vondrak (jvondrak)
#217 ranked lender in California - 1,741 contributions

If your interest rate is locked then, no they cannot change your interest rate. However if your interest rate lock expires right before closing and is not extended, you will be at risk for a higher interest rate.

Aug 5th 2013
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