Well, we got a thread for Renegotiation policies, why not Float-Downs!!!

To sum up BofA's - it sucks...float-downs are only available with 60+ day rate locks and their are add-ons or upfront costs...

I've heard Wells offers a free one...from looking on their site, it seems kind of bogus...1 lock per every 30 days basically:

^* Change of loan product, float-down, or re-locking requires underwriting approval. One-time float-down option is available for any non-Builder Best^® program; re-lock is not allowed within 30 days of the original lock and must occur immediately after existing lock cancellation. If re-lock period exceeds 60 days, applicable extended lock fees will be assessed. Credit is subject to approval.

Wachovia:

Lock with a float down ^{note 1} option.

If you think rates may go lower, but don't want to take a chance on your hunch being wrong, you can purchase our float down option. ^{note 1} A float down option gives you the security of locking-in the current rate—plus the opportunity to get a lower rate if market conditions improve. With this option:

• If interest rates fall, you can receive the new, lower rate plus 1/8 percent.
• You pay a refundable fee of 1/2 percent of your loan amount up front. This fee is credited toward your costs at closing and may be refunded if your loan is denied, but not if you withdraw your loan for any reason.

1 The float down option is limited to certain products. Please consult your mortgage specialist for product availability. Please consult your rate lock agreement and float down addendum for terms and conditions.

ING has the best float down. Its literally as simple as just requestiong the lower rate on the doc order. Only thing is they dont fluctuate with the market as much as a portfolio lender, so rates dont change much week to week typically. They are however VERY low now.

One trick that works with some lenders... ask for a swap.  If they had a loan fall out for the rate you are looking for, they can "swap" the loans.  You get what you want and the lender is basically even.  Doesn't always work, but worth a try.

Who have you gotten that thru with Kent? That sounds like a good idea and is certainly worth a try.

  I locked a couple last week Friday when things started deteiorating late in the day, only to bounce back 10x better on Mon/Tues.  Local lender here in WI, GSF Mortgage, told me I was SOL.

Kent, that is a fantastic idea.  Have you been successful doing that and if so what lender or lenders.

Kent Mikkola:

One trick that works with some lenders... ask for a swap.  If they had a loan fall out for the rate you are looking for, they can "swap" the loans.  You get what you want and the lender is basically even.  Doesn't always work, but worth a try.

I can see that with a small regional lender, but I'm doubting any of the big boys would allow that...I don't know b/c I'm a banker, but I'm usually dead-on when it comes to corporate policies...

akaagassi:

I can see that with a small regional lender, but I'm doubting any of the big boys would allow that...I don't know b/c I'm a banker, but I'm usually dead-on when it comes to corporate policies...

So far your record is intact.  It usually works with your smaller lenders (a lot of whom are giving you better pricing because they run everything as mandatory delivery).  It is nice tool to have rather then pulling the loan from the lender and ruining your pull thru ratio.

This is why I love this business so much--not a day goes by where I don't learn something new.

So Kent: as far as the loan criteria is concerned, do they have to be pretty similar in terms of all the denominations in order for the swap to occur, or does it not really matter?

Steven Bote:

This is why I love this business so much--not a day goes by where I don't learn something new.

 

So Kent: as far as the loan criteria is concerned, do they have to be pretty similar in terms of all the denominations in order for the swap to occur, or does it not really matter?

I honestly don't know.  I have never asked nor known how the other loan compared to the one I swapped.  My guess would be that it shouldn't really matter that much...