The refi rate lock I extended three times before closing

I started a refi on my house in Atlanta back in February when rates were around 6.5%. By the time the paperwork got sorted, rates dropped to 6.2% and I wanted to lock that lower number. My lender said I could float down once but only if I paid a 0.5% fee upfront. I paid it, then rates dropped again two weeks later to 5.9%. I tried to negotiate a second float down and they said no unless I paid for a full rate lock extension, which cost me another $1,200. Did anyone else get stuck paying extra fees when rates moved fast? I'm wondering if I should have just walked away and started fresh with another lender.

3 comments

3 Comments

scott.alex5d ago

Paid that $1,200 fee and then felt like I was basically paying the bank just for the privilege of watching rates go down again. At that point I figured I'd already sunk so much into the deal it was cheaper to just finish it than walk away and lose the money. Made me feel like a real genius locking in those fees while the market moved against me. Next time I'll probably just sit tight and not chase every little drop, unless my credit score takes another random dip like last year.

garcia.wren5d ago

Same boat over here @scott.alex, ended up spending $800 on points that vanished like smoke when rates dipped the next week.

jana5095d ago

Did you ever talk to your friend about their refi experience? I had a buddy in Smyrna who locked a rate in March, paid the extension fee twice, and then his lender just ghosted him for three weeks. He ended up calling another bank on a Thursday and they closed the whole thing in like 10 days flat, rate was even lower than what he was chasing. The new lender didn't even charge him for the appraisal since his old one was still good. He said he wished he'd just walked away the first time the fees piled up.