Posted by JT-IN on January 07, 2003 at 19:05:02:
Ben:
The operative question is… what is the index from which the variable rate is determined…? There are many that the Bank could use, even an index determined by the Bd of Directors… so in order to calcualate the rate that you should have gotten, the index must be published.
Once that info is known, it should be a simple matter from there.
JT-IN
Lock down option-Scam? - Posted by Ben (NJ)
Posted by Ben (NJ) on January 07, 2003 at 17:59:03:
I am closing on a property on 1/20/03. As part of my mortgage deal I paid extra for a lock down option which says
if within 20 days of closing the rates drop, then I can exercise my option and lock in at the lower rate. The problem is for the first 7 of the 20 days, the bank completely stonewalled me! I tried 3 different people multiple times, neither of whom returned my calls. Today I finally got someone and locked in at 1/8 of a point lower. I told him that I should get the benefit of any drop retroactively within the past 7 days because of the bank stonewalling me. He said this was the first dip since Jan 1st which I doubt. How can I verify this? It is a 3 year ARM, rate fixed at 5.25 for three years then adjusted year to year after that. I locked in today at 5.125. I also posted this on the finance forum. Thanks for any input.