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Aug 6th, 2022
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How to Type Interest Rate Lock Agreement

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my name is Anthony sir manera Im a senior home loan specialist here at Dai Tech and Im here to talk to you about one of the most important if the the single most important document in a lending package the interest rate lock agreement now why is that the case often you hear situations where a customer closes a loan and at the closing they realize that their offer has changed now how can you protect yourself from that with this form the interest rate lock agreement this document will show you what your interest rate is and how long the interest rate is locked in for you want to make sure its an executed interest rate lock agreement so make sure you follow the lenders instructions on how quickly you need to return this form but with this one document you should have the peace of mind that your offer is protected hope that was helpful thank you [Music]

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When can I lock in a mortgage interest rate? You can choose to lock in your mortgage rate from the moment you select a mortgage, up to five days before closing. Locking in early can help you get what you were budgeting for from the start.
Locking your interest rate means the rate will stay the same from the time of the rate lock until the rate lock expiration date, regardless of changing market conditions. Your final interest rate may be higher or lower than what was initially quoted to you if there are changes before your loan closes.
A rate lock is an optional feature that may be available to applicants of fixed-rate home loans. It enables you to secure a rate, meaning even if interest rates rise, yours wont. The lender usually charges a fee for this feature, but speak to your broker as this fee varies and some lenders may offer it for free.
Borrowers typically cant lock in a rate until after the initial loan approval and they worry that by locking in too early, they might miss the opportunity for a better rate before they complete a purchase, or that they might get stuck paying extra to extend the lock once it expires.
If interest rates go up: Youre protected. Your interest rate is set. Thats when a rate lock is well worth the price. If mortgage rates go down: Unless you have a one-time float down option on your lock, youll miss the lower rate.
If you want to avoid uncertainty and preserve the rate in your mortgage loan offer, get a mortgage interest rate lock. Interest rate locks can offer peace of mind to borrowers, but they are not foolproofyou could miss out on a lower interest rate after you lock and your loan might not close before the lock expires.
Can you lock in a mortgage rate before you have a purchase contract? In most cases, no. However, some lenders offer programs that allow you to lock for a set number of days while youre house hunting.
When locking your mortgage loans interest rate, you can choose to secure it from the moment you receive initial loan approval to 5 days before the closing. Some lenders may even lock your rate at the same time they send you the loan estimate.

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