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locking in a lower interest rate
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missfabulous
#mommyneedswine
Member since 6/09 10031 total posts
Name:
Colleen
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locking in a lower interest rate
We're currently in the contract stage and everything has been running smoothly.
The sellers had asked us if we would be okay ith a mid-June closing (they are buying a house as well and their sellers want to close mid-June).
However, if we lock in our rate now (which is good for 40 days) we get a 4.5% interest rate. If we wait longer, it could (and according to the mortgage broker- probably will) go up.
Our realtor suggested renting the house to them for a month. Has anyone had experience with this? We could close earlier and get the lower interest rate and just rent the house to them until they close and move out. (We would set a time frame of course).
Thoughts?
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Posted 3/14/11 9:39 PM  |
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csorisi
My 2 LOVES
Member since 11/05 1984 total posts
Name:
Corinne
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Re: locking in a lower interest rate
Although I don't like to suggest this to clients but can you extend the rate after 40 days for another 30 days and pay a small fee.
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| Posted 3/14/11 10:05 PM |
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Re: locking in a lower interest rate
Posted by csorisi
Although I don't like to suggest this to clients but can you extend the rate after 40 days for another 30 days and pay a small fee.
can't the sellers of the home pay for the extension instead of the buyer (missfabulous)? because they are the ones requesting the hold-up.
that's what I ended up doing - the seller had to pay the rate extension fee - not me.
Message edited 3/14/2011 10:14:09 PM.
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| Posted 3/14/11 10:13 PM |
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Mrs007
Im obsessed w my lil man!
Member since 3/09 2528 total posts
Name:
K
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Re: locking in a lower interest rate
My parents had to "rent" our house before moving. The buyers of our house wanted to move in ASAP and the sellers of the house they were buying wanted to wait until June to move because their daughter was in school. They ended up coming to a compromise and closed in April and moved in May so they "rented" for a little bit. No problems.
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| Posted 3/15/11 7:50 AM |
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Jenhos
Maeve
Member since 6/05 3273 total posts
Name:
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Re: locking in a lower interest rate
When we bought our current house we closed in Nov and rented it to the previous owners till Feb. The lawyers worked out all the details and we had no issues.
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| Posted 3/15/11 9:24 AM |
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ODonnell
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Member since 9/05 5983 total posts
Name:
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Re: locking in a lower interest rate
When I sold my co-op I had to pay to stay in it for an extra 2 days until we did the closing on our house and moved.
They can definitely build it into your contract and agree a daily/weekly rate.
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| Posted 3/15/11 11:29 AM |
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