Delete Image into the Interest Rate Lock Agreement and eSign it in minutes

Aug 6th, 2022
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How to Delete Image into the Interest Rate Lock Agreement

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- Im Sean Reynolds, the owner of Summit Properties Northwest and Reynolds and Kline Appraisal. And today I have with me Mr. Dan Chapman from Fairway Independent Mortgage, and were doing just a quick question-and-answer session on, we hear all the time, locking an interest rate. What does that mean? So Dan-- - Sure. - What does that mean? - When you lock your rate, youre locking in that rate for a specific period of time. And so, like I say, youre going to close your loan inside of 30 days, we would do a 30-day lock, and youre guaranteed no worse than that rate. - So youre locking in your interest rate for your mortgage? - Yep. - That youre going to be getting. - Yep, and youre guaranteed no worse than that rate. You can, actually, extend that lock, if you need to. So theres lock extensions. You can, actually, with the small possibility that your rate can improve, even though youve locked it in, but its no worse than that rate. - And so is there a cost to locking in a longe

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Rate Locks are to be written and signed agreements by our borrowers from what I gather on this unclear rate lock topic.
An extended rate lock is for purchase transactions only and secures an interest rate for a period beyond 120 days. An extended rate lock is especially a great tool for homes that are under construction.
What is a Rate Lock Agreement? A rate lock agreement is a legla document between a lender and borrower that locks in an interest rate for a certain amount of time. The idea behind the lock is to ensure that both parties agree on the interest rates, as well as the terms of repayment before agreeing to any loans.
If the rate lock expires before your loan closes, you may have the option to pay a fee to extend the lock period. Otherwise, youll get the interest rate thats available when you lock it before closing. If things change concerning your mortgage application or financial situation, your lender might void your rate lock.
What happens if the rate lock expires before closing? Real estate transactions dont always close on time. If your rate lock expires before the keys are yours, dont panic just yet your mortgage lender might offer to extend the rate lock, either free or for a fee.
If your rate lock expires before closing, youll have to re-lock a rate to close the loan. If rates havent moved, your new rate will likely be the same rate you originally qualified for. If rates increased during the lock period, your rate will likely go up. But if rates have fallen, you will not get a lower rate.
How much does a rate lock cost? Many mortgage lenders do not charge for a mortgage rate lock or rate extension. Among those that do, youre typically looking at 0.25% to 0.50% of the total loan amount for a rate lock (of 60 days or less), and between 0.06% and 0.375% for an extension.

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