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Broker changed interest rate

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Junior Member
What is the name of your state? PA

We are set to settle on my house next fri 6/24, or so we thought. We had signed a disclosure package from our mortgage broker stating that our interest rates would be 6.5 and 7.75 for our 80/15 loan and I thought we were good to go.

Today I received an email stating that our 2nd loan has been raised from 7.75 to 8% because our broker couldn't verify enough assets. I remembered that we didn't report our 401k in our application so I brought this up with her. She said it wouldn't matter anyway because rates went up and it doesn't make a significant difference.

Can our interest rate to just raise like that prior to closing even if we signed a disclosure with a lower rate?What is the name of your state?


If you do not have a written rate lock contract, then you are floating until closing. (ie, subject to daily changes in the interest rate until closing) Rate locks are usually good for a specified amount of time and in many cases, the lender will charge a rate lock fee.


Senior Member
I know that an IRA cannot be used as collateral for a loan and I doubt if a 401k could be either, since those are protected from creditors. So retirement accounts would not even be a consideration.

Until you get approved and unless you get a rate lock or close, the rate is subject to change.

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