Remove Page Numbers into the Interest Rate Lock Agreement

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Aug 6th, 2022
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How to Remove Page Numbers into the Interest Rate Lock Agreement

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[Music] hi jennifer hernandez what does locking the interest rate actually mean so when you are in transaction with us and you get a property under contract or if youre going to refinance the process is the same so uh lenders ill tell you how legacy does it we we we have 12 to 15 investor entities that we sell our loans to so we have a platform where we look up the rates on that day based on your qualifications your credit debt to income et cetera et cetera and we actually offer you xyz rate for the day lets just say the rate was three percent get very excited so three percent is the 30-year fixed rate for today okay um what that means is that is the rate which our company on that day in that hour or that moment is offering to you so you say yes jennifer we want to do business with you and we want that three percent so i hang up the phone quickly and i go to our secondary marketing department which is a market a department that deals directly with with our funds as we sell them to o

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Below are some common questions from our customers that may provide you with the answer you're looking for. If you can't find an answer to your question, please don't hesitate to reach out to us.
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Discount points lower your interest rate by a certain percentage. You might not be sure if discount points are right for you on the day of your lock. The good news is that you can choose to pay discount points later, but the cost will be based on the day you lock your rate.
Explaining a Mortgage Rate Lock. When a borrower locks in an interest rate on a mortgage, it should be binding for both the borrower and the lender. The interest rate is locked for the period from the offer of the loan to its closing.
Mortgage Rate Lock Cons You could miss out on a lower interest rate, which could save you thousands of dollars over the life of the loan. If the rate lock expires, you might be charged hundreds of dollars to extend it or miss out on the rate altogether.
A lock failure occurs when a lender refuses to honor a mortgage price that a borrower had believed was guaranteed. Lock failures occur when interest rates are rising and honoring locks becomes costly to lenders.
If your rate is locked, it can still change if there are changes in your applicationincluding your loan amount, credit score, or verified income.
Under this option, the lender lets you lock in the interest rate, while permitting or requiring the points to rise and fall (float) with changes in market conditions. If market interest rates drop during the lock-in period, the points may also fall. If they rise, the points may increase.
Credits or Points: If you originally Locked In your Mortgage Interest Rate, along with your point or credit options- its 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.
You can back out of a mortgage rate lock, but there are consequences. Backing out of a rate lock means giving up the application youve put time and money into. Youll have to start your mortgage application over from the start, and youll likely have to re-pay fees like the credit check and home appraisal.

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