Is this mortgage term too good to be true?
As the rate was about to increase today, Countrywide offered to fix the rate at 4.75% without my commitment to go with them. This was in addition to a credit of $3000 towards the closing cost, and an assurance that even though we are locking in the rate for 75 days, if the rate dropped during the 75 days, they would adjust the terms so we would be guaranteed the lowest possible rate. Is this too good to be true? by coronadad1972 from Corona, California. Dec 10th 2009
Leo Harvey (LHARVEY)
#6 ranked lender in Pennsylvania - 149 contributions
The rate they are offering is in line with overall rates from most lenders today. I hope you realize that there is no more Countrywide; they have been acquired by Bank Of America. If you are considering locking your rate, which may be a good idea, they should give you the terms in writing including the float down option that you are referring to. Typically this is used with construction loans where a longer than 60 day lock is required. However BofA is bogged down with business right now and re-finances are taking a full 75 days. The terms are probably legitimate but get it in writing to be sure.
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