Replace Value Choice from the Interest Rate Lock Agreement

Aug 6th, 2022
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How to Replace Value Choice from the Interest Rate Lock Agreement

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foreign is one of our loan officers here at Morgan Financial how long you been with us about three years three years Okay cool so tell me a little bit about yourself I was born in New York um came here when I was one um I have just me and my wife just welcomed our first baby in the world about 15 months ago awesome so its been good hes a good sleeper but super hectic cool yeah then a little little schedule change when you throw another life in there right yeah yeah a little bit different cool well so today were talking about rates locking rates in rate locks yeah right okay so what is a rate lock what is a rate lock a rate lock is essentially when you protect your rate from any increases in the market so once you lock your rate in and youre under contract and everythings starting to get going you essentially lock in and protect yourself from any variations that occur okay so when is a rate lock typically occur when you go under contract go under contract once yeah but the the clie

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If your rate lock expires, it may cost you more money! Most lenders will charge a fee to extend your rate. The amount of that fee is typically calculated based on the interest rate at the time the extension is requested. It may cost you thousands of dollars to extend.
Can my loan amount change after the rate lock? No. Your locked-in rate applies to your loans specific details including your loan amount so you cant change the loan amount after locking in.
If your interest rate lock expires before you close, you have two options: close with the current mortgage rate available or pay for a rate lock extension. If youre afraid of paying rate lock extension fees, speak with your lender.
A lock-in or rate lock on a mortgage loan means that your interest rate wont change between the offer and closing, as long as you close within the specified time frame and there are no changes to your application. Mortgage interest rates can change daily, sometimes hourly.
Depending on whos to blame for the loan failing to close on time, the lender might cover or pay a portion of the cost. If your lender wont extend the rate lock, the combination of rate and points you locked in might no longer be available. In that event, the loan would be based on the new prevailing rate.
If your interest rate is locked, your rate wont change between now and closing, as long as you close within the specified timeframe and there are no changes to your application. Check at the top of page 1 of your Loan Estimate to see whether your rate is locked, and until when.
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.
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.

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