When Can I Lock In My Mortgage Rate?


Recently, mortgage rates have been trending upwards. While no one knows what the future holds, it is a good time to review the fundamentals of mortgage rate lock-in and what it means to you.

The interest rate market is subject to movements without advance notice. Locking in a rate protects you from the time that your lock is confirmed to the day that your lock period expires. If rates rise, you are protected from the increases during your lock period. If rates go down, you must adhere to the terms of your rate lock agreement.

Lock-In Agreement

A lock is an agreement by the borrower and the lender, and specifies the number of days for which a loan’s interest rate and points are guaranteed. If you lock in your rate before an appraisal is completed, a rate adjustment may be required due to appraised value.

Should interest rates rise during that period, we are obligated to honor the committed rate. Should interest rates fall during that period, the borrower must honor the lock.

When Can I Lock?

Once we have received a completed application, you have selected a property (purchases) and we have collected your application deposit, you can lock your rate by calling us at 800-656-4328, ext 2043. We will require written authorization or email (mortgageprod@hfcu.org) from you to lock in your rate. If you lock in your rate before an appraisal is completed, a rate adjustment may be required due to appraised value. Otherwise, you may float your rate and lock in at a later time.  We do not offer online rate locks.

Fees

We do not charge a fee for locking in your interest rate.

Lock Period

We currently offer a 55 day lock-in period on our site. This means your loan must close and disburse within this number of days from the day your lock is confirmed by us.

Lock Confirmation

After you lock your rate, we will send you the Rate Lock Agreement to sign. Your copy is an acknowledgment that your rate lock is in effect.

Lock/Relock Changes

Once we accept your lock, your loan is committed into a secondary market transaction. Therefore, we are not able to renegotiate lock commitments.

Check out our current interest rates in our online Mortgage Center.  Or let us keep an eye on interest rates for you with Rate Watch.  We'll email you when rates reach your goal or, if you prefer, send current rate information on a regular basis.

Sign up for Rate Watch

What is a home appraisal and who completes it?
Can you apply for mortgage loans before you find a home to purchase?

About Author

Bill Burpeau
Bill Burpeau

Bill Burpeau is a relationship manager at Hanscom FCU. As a Credit Union Certified Financial Counselor, he is an enthusiastic advocate of financial literacy and education. He constantly studies and is up to date with the latest financial management concepts and technology. Bill is a graduate of Texas A&M University with a BBA in Business Management and served in the U.S. Navy as a Supply Officer.

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