Rate Renegotiation
A great feature that most of our lenders offer is the Rate Renegotiation. The benefit to our customers is that we can lock in the interest rate at the beginning of the loan process or as soon as they have their new home under contract. IF the interest rates drop sharply before closing we can renegotiate with the lender to lower the interest rate.
Here is how it works. All of our lenders have slightly different policies but most of them are similar to this: When we are within 15 days of funding the loan IF rates are lower we can offer you a lower interest rate by taking the current 30 day pricing (less a small pricing adjustment).
This is a hard concept to explain because mortgage pricing is hard to explain. To simplify the explanation imagine that IF rates drop .25% the lender will reduce your rate by .125%. Although this isn’t technically how it works it is oftentimes the outcome of the renegotiation.
We will notify you automatically if we see this opportunity and then complete the necessary paperwork with the lender to make the appropriate changes.
Why do we do this? What is in it for us? Nothing except to hopefully gain referrals. We don’t have much of a marketing budget so we rely heavily on word of mouth referrals to grow our business. So we hope that by going over and above what most mortgage company’s do you will enthusiastically refer us to your friends and family when it comes time for them to get need a mortgage.
