Should I lock my rate today?
If you’re already shopping for homes and certain you’ll be making a move in the next 30 to 60 days, locking in the rate is a good idea to ensure the one you’ve qualified for stays put..
Does locking a rate commit you to a lender?
Locking in the rate does not mean the borrower is wedded to that lender. The borrower is actually free to go elsewhere for a loan if the rates go down by the time the transaction is ready to close.
Can I back out of a rate lock?
A rate lock commits the lender to honoring the rate at closing as long as it occurs before the lock expires. … Borrowers can cancel a loan for a number of valid reasons; however, a borrower generally can’t cancel a rate lock.
Are Rate lock fees refundable?
A rate lock fee is a fee that allows a borrower to lock their rate but that fee is not refunded at closing. This term denotes a locked rate which extends beyond the typical 60-90 days offered by most lenders.
What is a rate lock fee?
A lock-in or rate lock on a mortgage loan means that your interest rate won’t change between the offer and closing, as long as you close within the specified time frame and there are no changes to your application.
What if I lock in a rate and it goes down?
If interest rates happen to go up during the period when your rate is locked, you get to keep your lower rate. On the other hand, if you lock your rate and interest rates go down, you can’t take advantage of the lower rate unless your rate lock includes a float-down option.