[OrangeD]

We applied for a mortgage a few weeks ago.We have excellent credit and are very well qualified. The rate at the time was 5.125%. We decided not to lock at that time but rather float the rate. The rates recently came down to 4.875%, so when I talked to the bank about locking in this rate they said I would have to pay 3/8 of a point, or I could stay with 5.125% with no points. I don;t understand why they are charging me points. I thought the whole idea of floating was a risk/reward, where we risk the rate going up but are rewarded if rates go down. Now i am being chaged becuase rates went down. I dont get it. Are they just charging me becuase they can, is this negotiable, do i have leverage to say I will walk away if i have to pay points? I can easily get a loan somewhere else.