Buyers Beware Your Interest Rate May Not Be Locked On Your Loan

Managing Real Estate Broker with Flexit Realty "Flexible Home Selling Solutions"

Have you ever heard the term locking your rate?  It refers to locking your interest rate on your mortgage loan.

You can go through the process of getting approved for a mortgage and have your rate change before you get the loan.  You can get a quote on the interest rate but if it Lock your interest ratesis not locked it may not be the rate you get when you close on your home.

Yes you read right.  Just because you are quoted a rate that may not be the rate you get at the time you actually close or finalize your purchase.

Many times buyers are surprised because they were quoted one rate and then the rates went up before they closed and now they are being asked to pay another higher rate. 

I have an article to help you understand and protect yourself by locking in your mortgage rate.

Click on the link below for some great information to help you get the rate you were quoted.

Hope this clears up some of the rate issues for you.Flexit Realty logo,

Gary L White-Flexit Realty www.flexitrealtymichigan.comIf you live in the Grand Rapids or the West Michigan area, are not under contract and would like to sell or buy a home....give me a call.  It could save you thousands in your next real estate transaction.  FlexIt Realty designs selling and buying programs to meet our clients needs.  Your call is always confidential and you are never pressured.

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Gary L. Waters Broker Associate, Bucci Realty
Bucci Realty, Inc. - Melbourne, FL
Fifteen Years Experience in Brevard County

This is a key bit of advice. Many buyers are surprised to learn about rate changes just as closing approaches!

Jun 28, 2009 01:28 AM #1
April Hayden-Munson
Brookfield, WI
Brookfield Wisconsin Real Estate

Great advice Gary!  Most buyers assume they are getting the rate they first spoke with their lender about --- unless they go lower, then that rate is expected.....

Jun 29, 2009 05:35 AM #2
Dave Armstrong
VanDyk Mortgage - Grand Rapids, MI
Senior Loan Consultant - Grand Rapids, Michigan

Hi Gary,

Good advice on rates and locking.  It's important for a client to be aware if the rate is locked or not. I typically allow the buyer to choose whether they would lilke to lock in the rate or prefer to gamble and see if the rates will go down.  I also watch the rate indicators and provide advice on locking in at the appropriate time.  One note on rate expirations, if the rate lock is due to expire prior to close I am able to extend the lock at a fee (typically .125 of the loan amount) rather than losing the interest rate to current market conditions as long as I extend prior to the expiration. 

Jul 27, 2009 08:29 AM #3
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Gary White~Grand Rapids Home Selling Pro Call: 616-821-9375

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