Credit score : 778 debt ratio : 999.99% LTV: 95.00 CLTV: 95.00 Lien: First ever Mortgage (Infact this is my first ever loan of any kind)
Closing date: 28 Feb 2014
My poor decision i went to the builder's lender and locked an interest rate that for 180 days @5%. the market has never reached this interest. I do have a float down option w/ max ceiling of.375. The lender is not co-operative and fairly giving me market
I am looking for a reasonable alternative options here.
First and foremost, I assume your debt ratio is NOT 999.99%, or anywhere much above 43%....... You've got plenty of time to explore other options, so that's the good news. If you change lenders, any advance lock fee you've paid will be lost, but if the rate is low enough, it still might be to your advantage to look elsewhere. Another thing to consider is whether the builder/seller is paying any of your closing costs. Often they will only do so if you use their in house lender, so make sure you're clear on that before pulling your loan. While 5% is not a great rate, it's about right if you did a 180 day lock. The float down policy should be pretty defined, did you get a copy of it when you initiated the loan? Current "best execution" rates are more like 4.5 to 4.625%. If you can float down to 4.625%, you're getting a good deal. If they hold you at 5%, I'd at least look at other options, and do so sooner rather than later so you have time to make a change if you decide that's in your best interest.