I should just switch lenders, right?

I’m under contract to buy a house, closing around end of September. We locked a rate with lender A about 2 weeks ago, at 5.625% buying .3 points. This was, even at the time, not a great rate, but first-time home buyers, hadn’t done our research, etc. – hindsight is 20/20, and lesson learned.

Today I had some idle time and started shopping around, since the closing is almost 2 months away and I had seen that mortgage rates have gone down. Now, a different company Lender B is quoting me 4.875 with no points. The difference ends up being about $200/month.

Question: I’ll have to pay the $500-ish appraisal fee to Lender A, do I also have to pay the application fee/credit check/etc?

Either way, seems like I should just go with Lender B and eat the fees to Lender A; feels like the equivalent of if I had paid upfront for a float down option and now I have a dramatically better rate. And there’s plenty of time remaining that we’re not in risk of not getting things in order for closing.

This is an obvious decision, right? Is there anything I’m missing or should be on the lookout for?

submitted by /u/bjc289
[link] [comments]

I’m under contract to buy a house, closing around end of September. We locked a rate with lender A about 2 weeks ago, at 5.625% buying .3 points. This was, even at the time, not a great rate, but first-time home buyers, hadn’t done our research, etc. – hindsight is 20/20, and lesson learned. ​ Today I had some idle time and started shopping around, since the closing is almost 2 months away and I had seen that mortgage rates have gone down. Now, a different company Lender B is quoting me 4.875 with no points. The difference ends up being about $200/month. ​ Question: I’ll have to pay the $500-ish appraisal fee to Lender A, do I also have to pay the application fee/credit check/etc? ​ Either way, seems like I should just go with Lender B and eat the fees to Lender A; feels like the equivalent of if I had paid upfront for a float down option and now I have a dramatically better rate. And there’s plenty of time remaining that we’re not in risk of not getting things in order for closing. ​ This is an obvious decision, right? Is there anything I’m missing or should be on the lookout for? submitted by /u/bjc289 [link] [comments]

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