The rate is locked at the point the loan estimate is issued. This estimate must be provided within 3 business days. You can read the federal regulation here: §1026.19(e)(3)(iv)(D) and Commentary ¶19(e)(3)(iv)(D)-1
In order to receive a lower base rate (without buying points) you would need to void your contract and submit a new one on a day the rate is lower than the rate at which you have locked. Of course buying points will lower your rate.
The 1/8th percent rate difference you are concerned about will be a difference of only about $15 or $20 per month. It will really only make a big difference if you are buying points in order to afford the mortgage and the 1/8th percent difference would require you to spend an extra 1% in order to make the payments affordable.
Otherwise you can take solace in the fact that even with at 3.25% you are still roughly half a percent lower than most rates IF you have impeccable credit.
This reply was modified 2 years, 5 months ago by Nelsont.
The $80 might not be a big deal. For some reason I think mine was off by a few hundred dollars, too. I am not sure why.
Some of the initial documents are not always right. You can reach out to your MC and ask, to make sure it’s not something that will cause an issue down the road. But I think mine was off on the first thing in the mail I got from BOA (you will likely get several over the course of the process) and it was fixed on later iterations.