Rate Lock Policy
We offer locks for 30, 45 and 60 day periods. Refinance transactions may be locked at the time of loan application. Purchase transactions may be locked once you have a signed contract on a property.
How Do I Lock?
When you sign your disclosures, you should contact your loan officer to request your rate lock. Your application will be reviewed by the Loan Officer who will contact you the same business day to lock in your rate.
Are Any Fees Collected When I Lock?
You will be asked to submit an appraisal fee by credit card at the time you lock your rate. The appraisal fee is $475- $625 depending on the property type. These funds will be maintained in a trust account and used to pay for your appraisal, a service performed by an independent third party.
How Long of a Lock Should I Take?
Most of our customers lock for 45-60 days which is plenty of time to close your loan as long as all parties do their part. On a purchase transaction, you want to make sure your lock period at least runs through the scheduled date of your closing. On refinance transactions involving the subordination of an existing second mortgage or home equity line of credit we require a 60-day lock.
What Happens if the Loan Process Takes Longer Than My Lock Period?
If the delay is caused by us, we will extend the lock at no cost. If the delay is caused by you or a third-party service provider your rate lock will be extended according to our extension or relock policy. Currently and extension is made with an adjustment to your points/credit of .20% for every 5 days needed at the end of your rate lock. If you let your rate lock expire and relock within 30 days, your pricing will be the higher of the pricing in place on the date of your original lock or the date of your new lock plus an additional cost of .25%.
Delays caused by you or a third-party service provider include but are not limited to: requesting subordination of an existing second mortgage or home equity line of credit; not supplying documentation in a timely manner; providing inaccurate, inadequate, obsolete or incomplete documentation or loan information; changes in loan terms or loan programs; HOA delays in completing and returning questionnaires; delays by a title company, closing agent or appraiser; and delayed appraisal inspections, termite inspections, not acknowledging receipt of a Loan Estimate or Closing Disclosure the same day, survey inspections or document signing appointments. If you believe any of these issues may occur on your loan, you may want to consider a longer lock period.
Can I Choose a Different Rate or Loan Product after I’ve Locked?
Yes. You may change the rate and corresponding points/credit from the rates/programs available when you locked. Your revised lock will be based on the pricing in effect for that rate and program on the date of your original lock.
Can I Change My Decision Regarding an Escrow Account After I’ve Locked?
You may change your decision as to whether or not you want to set up an escrow account for the payment of your taxes and insurance. Establishing an escrow account improves your points/credit by .25%. Your points/credit will be adjusted by .25% just as if you had made that decision at the time of your lock.
Can I Extend the Lock if I Need More Time?
You may extend the rate lock during the process with an adjustment to your points/credit of .20% for every 5 days needed at the end of your rate lock. It’s always best to take the time upfront to choose the lock period that is best for you and provides ample time. It’s more expensive to add the time later than it is to choose the longer time period upfront.
Can I Relock My Rate If I Cancel My Application and Reapply?
If you cancel your application and reapply within 30 days of your cancellation date for the same property, your pricing will be the higher of the pricing in place on the date of your original lock or the date of your new lock plus an additional cost of .25%. If 30 days have passed since your cancellation date or you lock for a new property, your lock will be based on the pricing in effect at the time of the new lock.
What Happens if I Let My Rate Lock Expire?
If you let your rate lock expire and relock within 30 days, your pricing will be the higher of the pricing in place on the date of your original lock or the date of your new lock plus an additional cost of .25%.
Should I Lock or Float My Rate?
On a refinance transaction, if the savings you will achieve with the new lower rate will recapture the closing costs of the loan in a relatively short period of time, you should probably go ahead and lock your rate and close your loan. Trying to time the bottom of an interest rate cycle is tricky and each month you delay costs you in the form of carrying a higher interest rate on your old loan. If rates fall further, you can always refinance again.
On purchase transactions, in times of stable interest rates, most of our customers lock when they are within 45-60 days of closing. Locking for a period longer than 30 days increases the cost of the loan slightly but is sometimes a good idea if rates are volatile.