Add Interest Rate Lock Agreement eSign with airSlate SignNow

Add Interest Rate Lock Agreement eSign

in this episode of would group University we're learning all about mortgage rate locks when to lock extending your lock fees floating down options and more [Music] [Applause] [Music] mortgage interest rates change everyday but you can lock your interest rate and set it for a specific period of time this allows you to protect yourself from market changes while you close on your home in most cases you'll choose to lock your rate from 15 to 90 days this period is called your rate lock period and lenders allow you to select a specific time in 15 day increments most home purchases have a 30 to 45 day lock to match with your contract closing there are times where a longer rate makes sense like new construction some lenders offer a 180 day lock program for new bills to provide you the peace of mind on your payment's while your home is being finished there are two fees associated with interest rate locks the initial lock fee and possible extension piece the initial rate lock fee is included with all rate locks the shorter the lock period the smaller the fee your mortgage advisor will help you select the right lock option for you if you encounter an obstacle with your closing you may run the risk of having your lock expire the good news is that you're able to extend your interest rate lock for a fee this is the second kind of lock fee you can see an example of these rates and fees at the link in the video description now let's tackle some frequently asked questions first when should you lock your rate here's the simple answer if you're comfortable with the monthly payment at a particular rate and you know your estimated closing date go ahead and lock no one can say exactly what day is best but your mortgage advisor can help you decide the smartest time to lock second can you change lenders after locking a rate the simple answer is yes you can however you should know that if you paid an application fee or for an appraisal on your home those items will not be refunded to you and you'll probably have to pay them again switching lenders isn't ideal because of the cost and the risk to your closing timeline but if your mortgage advisor isn't providing the service you expect it may be necessary last what happens if rates go down after you log some lenders including fairway have a float down option that allow you to capture the lower rate within certain parameters ask your mortgage advisor about these options before you lock your rate do you have other questions about locking your interest rate curious about something else related to buying we'd love to hear from you get started with the pre-approval or contact a mortgage advisor atwood group mortgage calm / start [Applause] [Music] [Music]