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You are not locked in to any mortgage rate and or points that were used on any estimates of closing costs. Rates fluctuate daily...sometimes twice a day. Your choices: - Call immediatley with a credit card number for the application fee if you want to lock in the rate. If the rate that was used on the estimate is still available, we'll lock you in. If not, we'll let you know what the current rate is and then you can decide if you would like to lock in or not lock in.
- "Float" your rate. You do not need to lock in your rate. This means your rate will go up and down with daily rates until you lock in.
- If you decide to let your rate "float", you can lock in anytime up to 10 days prior to closing.
What if I lock in my rate and the rates come down? New legislation that got passed on 05/01/2009 make it imposible to lower your rate after lock in without additional appraisal and or costs involved. You can do it, but it will cost you additional money. What do you think is going to happen to rates? My crystal ball broke 10 years ago. Here are my thoughts....we would all like to get the "lowest rate", wish we sold all of our investments at the "high", wish we bought investments at the "low", wish we had sold our homes years ago when the market was "hot". In this market, it's impossible to predict what the lows and the highs are. You can listen to hundreds of economists who are educated on the subject and they will each have their own opinions on mortgage rates. Your own peace of mind is worth something. There are several items that will effect your mortgage rate: - Occupancy
- Loan amount
- Value of residence according to the appraisal which we don't know until we receive the appraisal
- Purchase or Refinance
- If refinance, cash out or rate and term
After you lock in your rate, it is generally good for 60 days. You cannot lock in your rate until you've purchased a home and know when your closing will be. Your locked in interest rate does not mean your mortgage is approved at that rate. We do our best to take all of the variables into consideration but we don't know everything at the time a rate is given. Appraised values may alter the rate.
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