HELP!! Mortgage Rate Problem/Question

ILT1221 Posted: Jul 10, 2003 02:44 PM

HELP!! Mortgage Rate Problem/Question

Hi girls,

I'm in the process of negotiating with the buyers of my prospective house. It turns out they don't want to move until December they are having a house built in Florida. Initially the realtor said Oct/Nov and if the husband received a good offer they would move sooner. But now they are not definitely moving until Dec which is 5 months away.

They said they would pay for any fees associated with extending the lock in rate of the mortgage now (July) but not move until December. They think it will be like 2K. I feel like this is not enough since compensation i.e, now I won't be able to move until after the holidays. I'm not sure if I should look into this or if I should just say forget it. Any feedback is appreciated. Oh and they don't want to pay us rent either.

Meg9-20-02 Posted: Jul 10, 2003 03:10 PM

Re: HELP!! Mortgage Rate Problem/Question

If you really want the house, try to negotiate with them. Are you going to have to pay any additional money besides fees to hold the mortgage rate? IMO, they should provide you more compensation than just paying those fees.

Fran M Posted: Jul 10, 2003 03:15 PM

Re: HELP!! Mortgage Rate Problem/Question

Talk to your lender and see if its even possible to extend a rate that long. When we were shopping we were typically heard 45 day lock (if you pushed them) with one 30 - 45 day exten.

yabbobay Posted: Jul 10, 2003 03:57 PM

Re: HELP!! Mortgage Rate Problem/Question

my sister is having a similar problem...so they are still actively looking and if they find something else...all binders will be off...

Jenn P Posted: Jul 10, 2003 04:42 PM

Re: HELP!! Mortgage Rate Problem/Question

Fran's right; you probably won't be able to lock for that long. I've never heard of it. Good luck.

Lisa Rose Posted: Jul 10, 2003 04:45 PM

Re: HELP!! Mortgage Rate Problem/Question

actually Kathi didnt close on her house for almost 6 months. Why not FM her and ask her how they handled it. She is also a real estate agent and she might have some insight!!

ILT1221 Posted: Jul 10, 2003 05:02 PM

Re: HELP!! Mortgage Rate Problem/Question

Thank you all.

Lisa which Kathi?

Sasha96 Posted: Jul 10, 2003 05:15 PM

Re: HELP!! Mortgage Rate Problem/Question

I too don't think you can lock the rate for that long. I think you only get one extension. I agree, find someone savvy who has been in the business for a while to see what some options may be for you. Is this a dream house at a dream price? Is there any way to let this linger for a bit and still back out (so you can look elsewhere) without loosing any money?

Kathi Posted: Jul 10, 2003 09:27 PM

Re: HELP!! Mortgage Rate Problem/Question

This Kathi

We went into contract in April and didn't close until mid-November! But, we knew going into it that we were 'rolling the dice' with the rates. Thank God, for us, they went DOWN!!! We couldn't lock until September (we locked for 60 days). If you lock and extend, it'll cost plenty!!!

Our sellers were not willing to compensate us more than $500 for any 'fees' associated w/ extending, $2K isn't bad!! You may be able to lock for 60 and extend for 60 with a 1-point penalty, depending on the amount of your loan, it might make sense for you.

If you love the house, it might be worth the risk. You'll be able to lock in October. I have no idea where the rates will go in 3 months, but I can't imagine they'll go much above 6%.

Good luck in whatever you decide!