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Locking in your interest rate.

By
Real Estate Agent with Integrity Plus Realty, LLC Texas 0609317

Locking in your interest rate. What does this mean to you and your lender? 

 

1. Interest rate: You've applied for a mortgage loan, submitted all your documentation to the lender, found your dream homes, gone through contract negotiations, inspections and are ready to lock in your mortgage interest rate. Until the mortgage interest rate is locked in, the rate is "floating". With the "lock in", you are electing to close at the lock in interest rate, even if the interest rate changes in the marketplace. The lock in interest rate is good for a period of time, usually 30 to 60 days. Note: when a lender provides a pre-application worksheet with an interest rate, this is a proposed interest rate for that day. 

2. Points or Fees: Speak to your lender about the difference between points or fees that reflect in the mortgage interest rate on your mortgage loan. For example, the rate may increase slightly if you elect to waive an escrow account. 

3. Length of Lock: A typical lock in period is 30 days. Rate lock extensions are available and could cost you a premium. 

Having a Realtor as your advocate will help in determining the time frame to close on your dream home and to work closely with the lender. The lender will not share any financial information, but will provide updates as to how the loan is progressing to meet the closing date. 

Looking for homes for sale in North Dallas, TX or need to sell your current home?  Call 214-282-2945 for complete the form for your complimentary home estimate. 

 

Bernadine (Berni) Eberle, Realtor®
Listing/buying agent, First Time Home Buyers, New construction. 
Keller Williams Central
214-282-2945

 

Comments (2)

Tammy Lankford,
Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 - Eatonton, GA
Broker GA Lake Sinclair/Eatonton/Milledgeville

I do wish consumers would include me in the conversation before they lock.  I have one buyer who will not be closing on time. He's not happy, but he didn't ask for my input about the length of the lock or the timing.

Sep 20, 2016 02:15 PM
Bernadine Eberle
Integrity Plus Realty, LLC Texas - Plano, TX
Home Sales in North Texas

Tammy Lankford, Thank you for reading and commenting.  Continuing to inform our consumers will help with this process.

Sep 20, 2016 10:52 PM