 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
|
©
2002 Ruth E. Campbell. |
|
|
Frequently Asked Questions Mortgages
- Q & A Q: How do you lock in an interest rate?
A: Locking in a mortgage rate with a lender is one way
to ensure that same rate still will be available when you need
it. Lock-ins make sense when borrowers expect rates to rise during
the next 30 to 60 days, which is the usual length of time lock-ins
are available. A lock-in given at the time of application is useful because
it may take the lender several weeks or longer to prepare a
loan application (though automated loan practices are cutting
this time dramatically). However, some lenders require borrowers to pay lock-in fees
to assure particular rates and terms. Be sure to check that
the rates and points are guaranteed and that your lock-in period
is long enough. If your lock-in expires, most lenders will offer
the loan based on the prevailing interest rate and points. Lenders may have preprinted forms that set out the exact terms
of the lock-in agreement. Others may only make an oral lock-in
promise on the telephone or at the time of application. Resources: * "A Consumer's Guide to Mortgage Lock-Ins,"
published by the Federal Reserve Board and Office of Thrift
Supervision, Washington, D.C. Q: Do you advise a lock-in on a home loan?
A: Locking in a mortgage rate with a lender is one way
to ensure that same rate still will be available when you need
it. Lock-ins make sense when borrowers expect rates to rise during
the next 30 to 60 days, which is the usual length of time lock-ins
are available. A lock-in given at the time of application is useful because
it may take the lender several weeks or longer to prepare a
loan application (though automated loan practices are cutting
this time dramatically). However, some lenders require borrowers to pay lock-in fees
to assure particular rates and terms. Be sure to check that
the rates and points are guaranteed and that your lock-in period
is long enough. If your lock-in expires, most lenders will offer
the loan based on the prevailing interest rate and points. Lenders may have preprinted forms that set out the exact terms
of the lock-in agreement. Others may only make an oral lock-in
promise on the telephone or at the time of application. Resources: * "A Consumer's Guide to Mortgage Lock-Ins,"
published by the Federal Reserve Board and Office of Thrift
Supervision, Washington, D.C. Q: Where do I get information on lock-ins?
Q: What is the value of a mortgage lock-in?
A: Locking in a mortgage rate with a lender is one way
to ensure that same rate still will be available when you need
it. Lock-ins make sense when borrowers expect rates to rise during
the next 30 to 60 days, which is the usual length of time lock-ins
are available. A lock-in given at the time of application is useful because
it may take the lender several weeks or longer to prepare a
loan application (though automated loan practices are cutting
this time dramatically). However, some lenders require borrowers to pay lock-in fees
to assure particular rates and terms. Be sure to check that
the rates and points are guaranteed and that your lock-in period
is long enough. If your lock-in expires, most lenders will offer
the loan based on the prevailing interest rate and points. Lenders may have preprinted forms that set out the exact terms
of the lock-in agreement. Others may only make an oral lock-in
promise on the telephone or at the time of application. Resources: * "A Consumer's Guide to Mortgage Lock-Ins,"
published by the Federal Reserve Board and Office of Thrift
Supervision, Washington, D.C. |