When and how does one "lock in" a mortgage rate during the home buying process?
Answers:
Once they quote you the rate they will usually ask you if you want to lock in the rate. Sometimes they will charge you an upfront allowance to lock the rate. This has been my experience beside Countrywide and other big banks.
YOu lock within the interest rate when you have an accepted purchase contract and you notify the lender that you own decided to use them for your loan. You get a free lock for 30 days. Some lenders tender 60 days so you can be more flexible. It's part of your shopping to learn who offer what.
It is possible to lock in today's rate for a fee. A lender will guarantee to save today's rate for 120 days for an upfront fee of $1,800. Seems like seriously of money; that's why no one does it. But if rates jump up, you will decision you paid the money.
Locks vary by lender. Some have 'float down' option allowing you to lock and then relock if the market improve. Ask your lender about this. As a broker, I often lock my clients beside one lender as a hedge against market movement. If the flea market improves, I submit the file to another of my lenders at the better pricing.
You lock it with the lender. Ask your lender.
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