Mulitple Locks for mortgage refi

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2quiker
Posts: 60
Joined: Sun May 10, 2020 12:39 pm

Mulitple Locks for mortgage refi

Post by 2quiker »

I applied at a few place and got some estimates, I heard back from the first one which offered 3.25% refi with a $7 fee.
I thought it was good so I asked to lock with them at 3.25. The other company came back with 3.125% refi with no fees. I sent an email and called the first company asking if they can match the offer, I wanted to give them the chance to match since they were the first ones i locked with. I have not heard from them since, would it be wise to lock withe company that is offering 3.125%, I want to be ethical and give the first company a change to match, thoughts?
Goal33
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Joined: Sun Apr 12, 2015 12:30 pm

Re: Mulitple Locks for mortgage refi

Post by Goal33 »

Lock the 3.125 and ask the original to go to 3.0

edit: don't think this is an ethics question... and ultimately the mortgage broker is not the one paying your mortgage, they'd do the same thing especially since they know all the strategies.
Topic Author
2quiker
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Joined: Sun May 10, 2020 12:39 pm

Re: Mulitple Locks for mortgage refi

Post by 2quiker »

ya i asked them if they can beat it, they call me back and offered to match it and offer an concessions, which was good but when I checked their estimate it sill have the 3.25%. I called the first mortgage place but the mortgage person was gone, I left a message and told them I was going to lock with the other place. I was trying to nice and give them the opportunity to match it or beat. I ended up locking with the other place, hopefully I got it in on time.
siankisr
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Joined: Sat Sep 08, 2018 6:32 pm

Re: Mulitple Locks for mortgage refi

Post by siankisr »

Would you mind sharing the mortgage lender? I need to work on my negotiating skills, would need some tips as well.
Topic Author
2quiker
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Re: Mulitple Locks for mortgage refi

Post by 2quiker »

siankisr wrote: Thu May 14, 2020 5:21 pm Would you mind sharing the mortgage lender? I need to work on my negotiating skills, would need some tips as well.
One Yrue Loan was my first refi, name is weid but they are legit. and they were great but there rates weren't nearly as competitive as Lenderfi, Better Mortgage. Just get estimates from multiple plaves and use them them against one another to who who gives you best rates and credits.
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ResearchMed
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Re: Mulitple Locks for mortgage refi

Post by ResearchMed »

2quiker wrote: Thu May 14, 2020 1:39 pm I applied at a few place and got some estimates, I heard back from the first one which offered 3.25% refi with a $7 fee.
I thought it was good so I asked to lock with them at 3.25. The other company came back with 3.125% refi with no fees. I sent an email and called the first company asking if they can match the offer, I wanted to give them the chance to match since they were the first ones i locked with. I have not heard from them since, would it be wise to lock withe company that is offering 3.125%, I want to be ethical and give the first company a change to match, thoughts?
Don't forget... the lender can change the rate anytime, so if you didn't lock... it might be too late "later".
IF you find a good rate, probably best to grab it, even if there is a small/modest fee.
Then if you can find something better later, great.
It will only take one time of calling a lender back to "take" that great rate and then find out it's no longer available, and maybe the new rate is considerably higher, to learn this first hand.

When you think about the savings of a lower rate over many years, a small fee to lock can look very appealing.

And yes, it never hurts to ask one lender to meet the rate offered by another. Worst case? They say "no", and you are back where you would have been if you hadn't bothered to ask.

RM
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Bogle_Bro
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Location: Frisco Texas, Mortgage Banker & Attorney

Re: Mulitple Locks for mortgage refi

Post by Bogle_Bro »

As long as you are negotiating in good faith, don't feel bad about playing the deals off each other. It's more of a business etiquette issue than an ethics issue to give the original lender the opportunity to match.

The proper action is certainly to give the original lender a reasonable opportunity to match. Remember that loan officers are generally paid on commision with only a very small base.
Last edited by Bogle_Bro on Thu May 14, 2020 9:48 pm, edited 3 times in total.
Bogle_Bro
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Re: Mulitple Locks for mortgage refi

Post by Bogle_Bro »

siankisr wrote: Thu May 14, 2020 5:21 pm Would you mind sharing the mortgage lender? I need to work on my negotiating skills, would need some tips as well.
It's simple, really: provide a competitor's quote, ideally a formal loan estimate, and say "can you beat this?"

Once you find a deal with satisfactory terms, lock.

You can then keep shopping the deal after you lock by using the locked loan estimate to negotiate with other lenders. If you find a significantly better deal where it makes sense to eat the deposit, or if the deposit is still in a refundable period, see if the lender you locked with originally will match. If they won't match, switch. Lather, rinse, repeat.
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BrandonBogle
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Re: Mulitple Locks for mortgage refi

Post by BrandonBogle »

Bogle_Bro wrote: Thu May 14, 2020 9:42 pm
siankisr wrote: Thu May 14, 2020 5:21 pm Would you mind sharing the mortgage lender? I need to work on my negotiating skills, would need some tips as well.
It's simple, really: provide a competitor's quote, ideally a formal loan estimate, and say "can you beat this?"

You can then keep shopping the deal after you lock by using the locked loan estimate to negotiate with other lenders. If you find a significantly better deal where it makes sense to eat the deposit, or if the deposit is still in a refundable period, see if the lender you locked with originally will match. If they won't match, switch. Lather, rinse, repeat.
This is essentially what I did and where I stood. I got my Loan Estimates and shopped the lenders against each other, but I only gave one an "intent to proceed" and gave each an opportunity to beat my then-best offer. If they did, I would give them a chance if I found a better rate. If not, then I wouldn't bother them again.
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