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Locked, Re-locked and Loaded
(Barry Habib is the National Training Director for GMAC Mortgage and Owner of the Mortgage Market Guide, a subscription-based rate alert for loan officers to help them better understand what's happening with the financial markets and how it affects mortgage interest rates. For more information [Email Us].)
You have all gotten that dreaded telephone call. The rates have decreased 1/4% and the client that you locked in last week wants you to RE-LOCK them at a lower rate! Here is my argument on why those clients should not switch and which surprising factors should be considered before they do. This is an issue you are always confronted with-regardless of what the interest rates are at the time.
Consumers want to protect themselves from rates going higher so they lock-in the interest rate at the time of application. But, what if rates decline during the process-just like we have seen over the last several months? Should borrowers switch lenders to get a lower rate?  Written By: Barry Habib
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