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Navigating Change: Modifying Your Mortgage Rate After Approval but Before Closing


The process of obtaining a mortgage involves several steps, from application to approval and finally to closing. But what if you're approved for a mortgage and then circumstances change, making you wonder if you can adjust your mortgage rate before closing? In this article, we'll explore the possibility of changing your mortgage rate after approval but before closing, along with the factors to consider and steps to take.

Understanding the Mortgage Rate Approval
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Scenario: Your mortgage application has been approved, but you're contemplating changing your mortgage rate due to market fluctuations or other reasons.

Consideration: Once your mortgage is approved, you're typically offered a specific interest rate based on market conditions and your financial profile. However, certain situations might prompt you to consider changing this rate before the closing process is complete.

Factors to Consider:

Rate Lock Agreement: If you locked in a specific interest rate when your application was approved, there may be terms and conditions associated with changing it.

Market Conditions: If mortgage rates have changed significantly since your approval, you might be considering changing your rate to secure a better deal.

Lender Policies: Lenders have policies regarding rate changes after approval. Understanding these policies is crucial.

Can You Change Your Mortgage Rate?

In most cases, you can indeed change your mortgage rate after approval but before closing, but there are important factors to keep in mind:

Rate Lock Period: If your rate was locked for a specific period, changing it might require renegotiation with the lender. They will consider current market rates and your financial circumstances.

Rate Change Fees: Some lenders might charge a fee to change the locked rate, especially if market rates have not significantly changed since your initial approval.

Lender Approval: The decision to change your mortgage rate ultimately rests with the lender. They will assess whether the change aligns with their policies and whether it's feasible based on current market conditions.

Steps to Changing Your Mortgage Rate:

Contact Your Lender: If you're considering changing your mortgage rate, contact your lender as soon as possible to discuss your options.

Assess Market Conditions: Research current market mortgage rates to determine if a change is advantageous.

Review Terms: Review the terms of your original rate lock agreement, if applicable, to understand any potential fees or restrictions.

Negotiate with Lender: Discuss your reasons for wanting to change the rate with your lender. They will provide information about the feasibility, potential costs, and required steps.

Tips for a Smooth Transition:

Prompt Communication: Early communication with your lender is crucial. Waiting until the last minute could cause unnecessary delays.

Understand the Costs: Make sure you understand any associated costs, such as fees for changing the rate, before making a decision.

Be Realistic: While changing the rate can be advantageous, consider whether the potential savings outweigh the costs and efforts involved.


Changing your mortgage rate after approval but before closing is possible, but it's important to approach the situation with careful consideration and clear communication with your lender. Market conditions, lender policies, and potential costs will all play a role in the decision-making process. By understanding your options, weighing the pros and cons, and working closely with your lender, you can make an informed decision that aligns with your financial goals and enhances your homebuying experience.

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Frequently asked questions (FAQs) related to bank mortgage rates

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*CD Rates are subject to change without notice and may vary from bank to bank and branch to branch. Please contact your local bank for updated bank CD rates.