Lender Float Down Policy

I am currently locked in at a 6% rate with an fha, but I understand the rates are better. Can this be changed to reflect the better rates of the economy?

1 Answer

Has your loan closed?  If not, then your lender could have a float down policy.  This means that you can take your locked rate to the current rate.  It is usually at somewhat of a cost.  For example, Wells Fargo will take your rate to current pricing, but at a 0.500 cost to the current points.  You can do this without costing you points though. 

Not all lenders have a float down policy though.  Check with your mortgage professional and they will be able to tell you. 

If your loan is closed, then you will to refinance your home to take advantage of the lower rates.  I do not know of any FHA lenders will offer lower rates once you have your loan in place.