You’re Locked-in, But Don’t Worry

1. Get Started November 2019 You’re Locked-in, But Don’t Worry… Back to blog Perhaps you’ve heard the term “Lock In” regarding Mortgage Interest Rates. It sounds like a big, and perhaps scary, commitment- no? No worries! (And no need to get cold feet.) We’ll explain why Locking In that Mortgage Interest Rate isn’t as big of a step as one may think. What happens when you lock it in? Locking In the Mortgage Interest Rate is one of the earlier steps taken when securing a mortgage; For most home shoppers, it’s best to lock in your Mortgage Interest Rate after you sign a purchase agreement. Don’t lock too early — If your loan doesn’t process within your lock period, you’ll lose the mortgage rate. It pays to shop around when looking for Mortgage Interest Rates. A Mortgage Rate lock fee can vary from Mortgage Lender to Mortgage Lender. Once Mortgage Lenders have your property info, sales contract, proof of income and analyzed your credit history they’ll proceed with securing the best Mortgage Interest Rate possible. Once you Lock-In the Rate, a Mortgage Lender will agree to keep that Mortgage Interest Rate between 30, 45, 60, to 90 days. After that, you might have to pay a fee to extend the mortgage rate lock.  What is the Mortgage Interest Rate lock period?  

2. It’s the amount of time you and your Mortgage Lender agree on a Mortgage Interest Rate that will stay locked before the closing date. Locking in a Mortgage Interest Rate protects your Mortgage Rate from market changes that could increase the Mortgage Rate. And, although Mortgage Interest Rate lock protects you from higher rates, it won’t get you a lower mortgage rate, either; unless you have the option for a one-time ‘몭oat down.’ Once locked, the loan’s Mortgage Interest Rate won’t change — barring any changes to your application details. You’re protected from higher Mortgage Interest Rates but might not have the options for the free one-time 몭oat-down (most Mortgage Lenders don’t offer a 몭oat down option).   When should I lock in my Mortgage Interest Rate?   Many people wishing to re몭nance or purchase a home ask, “What if you lock in before an appraisal?” If you lock in your Mortgage Interest Rate before an appraisal is completed, a Mortgage Interest Rate adjustment may apply due to appraised value. Otherwise, it may be possible to 몭oat your Mortgage Interest Rate and lock in at a later time (depending on the Mortgage Lender).  We always recommend locking in your Mortgage Interest Rate as soon as you can, especially if the mortgage Mortgage Lender has a free 몭oat down policy.  What if my Mortgage Interest Rate lock expires?  Another concern from borrowers is as follows: “My mortgage rate lock is about to expire and we haven’t closed yet??” Answer: Once the closing date is only a month or two away, the Mortgage Lender will allow you to lock in your Mortgage Interest Rate for a certain number of days. However, if you must postpone closing past the Mortgage Interest Rate lock’s expiration date, the Mortgage Interest Rate lock might not be valid or you might have to pay a rate lock extension fee.    No Commitment or Obligation  Here’s why you shouldn’t worry about locking in. Most homeowners think because they locked in a Mortgage Interest Rate with a Mortgage Lender they have committed themselves to the Mortgage Lender (which is not true).   At any point during the Re몭nance or Purchase transaction, you can cancel or choose to work with another Mortgage Lender. NO commitment, NO obligation, NO worries…   Things that can change the Mortgage Interest Rate.    If you need to update your mortgage application: If you wish to add a co-borrower, change the loan amount, or

3. make any other updates… it’s possible to have your Mortgage Interest Rate change based on the new scenario, loan amount, etc.  You want a different kind of mortgage: Even if you need to change the mortgage type, most likely your Mortgage Interest Rate will change based on the new mortgage program.  For example, if you choose to change your conventional loan to an FHA loan.   Credits or Points: If you originally Locked In your Mortgage Interest Rate, along with your point or credit options- it’s possible to change the point or credit options to have your options based on the Mortgage Interest Rates that existed on the same day that you originally took out the loan. For more information on Mortgage Interest Rates, or to speak with a professional, please feel free to contact us.   Buying a Home Financial Tips Share post: Re몭nancing Was this article helpful? Yes No 0 out of 0 found this helpful Related posts December 2015 March 2019 Keeping Your Financial Home In Order 5 Tips to Downsizing During The Chaos

4. So you found “the one”.   Now it’s time to lock in your 몭nancing to secure your dream home. ... Times are looking bleak for many; Some are out of work, companies are struggling to stay a몭oat and the econo... Financial Tips Financial Tips September 2016 November 2019 [Top 7 Home Buying Tips]: How To Protect Yourself & Determine If It’s The Right Time To Buy A Home 6 Reasons Why You Should Re몭nance. There are many reasons to consider re몭nancing your current Mortgage (and many of which can be to your bene몭... Michael Sema sits with One America News Network's Liz Wheeler on the Tipping Point to discuss why h... Financial Tips Re몭nancing Buying a Home Tools Purchase Calculator Re몭nance Calculator Affordability Calculator Rent vs Buy Calculator Credits / Points Calculator Programs Comparison

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