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 an accepted offer on a property.
How Do I Lock?
When you submit your online application, it will be analyzed by our Automated Underwriting System and, in most cases, be immediately approved. A rate chart will then appear showing all available rates for your loan request, along with the corresponding closing costs. You select the rate you wish to lock. Your application will be reviewed by the Loan Officer who will contact you the same business day to get you in a position to lock 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 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,the lock period must at least run through the scheduled date of your closing. We recommend leaving some additional days beyond the est date of closing in case there are delays or scheduling changes not lending related. On a refinance, a 30 day rate lock is sufficient if the appraisal is done immediately and you work quickly to get us the necessary documents. 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 an extension is made with an adjustment to your points/rebate 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 plus an additional cost of .25% or the pricing on 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; 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 After I’ve Locked?
You may change the rate and corresponding points/rebate for the program you are in but the change would be based on the pricing in effect for that rate on the date of your original lock, not the new market rate.
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/rebate by .25%. Your points/rebate will be adjusted by .25% just as if you had made that decision at the time of your lock.
Can I Change to a Different Program After I’ve Locked?
Changing programs after you’ve locked is allowed and will be based on the pricing in place on the date of your original 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. On a refinance a 30 day rate lock would be sufficient in most cases. On a purchase transaction, we require the original rate lock at least cover the estimated date of closing on the sales contract. In a purchase transaction however, we strongly recommend borrowers choose a rate lock with some additional time passed the closing date to account for any delays or changes in scheduling that is not lending related. It’s more expensive to add the time later than it is to choose the longer time period upfront.
Can I Get a Lower Rate if the Market Improves After I’ve Locked? (“Float Down”)
Get A Rate offers a free float-down option. If our published rates are AT LEAST 0.375% lower (for the same or lower total lender points or lender fees and credit) than your originally locked rate, you may float down your rate at the time your closing documents are ready to be drawn. The new rate will be the rate that is posted on our website for the same or lower TOTAL lender points and fees or a rebate plus 0.125% in rate. So if our published rate is .375% less for your exact scenario, you would receive a .250% reduction in your interest rate.
The float-down option is only applicable to the interest rate and not to the interest rate as well as the points or credit. Your points and lender credits will remain the same as your original loan terms. The float-down option is only available on original rate locks and is not available on expired or extended rate locks.
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, your pricing will be the higher of the pricing in place on the date of your original lock plus an additional cost of .25% or the pricing on the date of your new lock plus an additional cost of .25%.
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 plus an additional cost of .25% or the pricing on 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, we recommend that you 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 and paying for the higher interest rate on your old loan. If rates fall further after you close on the refinance, 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 recommended when rates are volatile.