Fax Mark Interest Rate Lock Agreement For Free

As an alternative to changing the rate, some lenders will let you extend your rate lock beyond the initial period, at a cost. A rate lock extension fee is that cost: the price you pay to extend the rate lock period.

If your interest rate is locked, your rate won't change between when you get the rate lock and closing, as long as you close within the specified time frame and there are no changes to your application. Rate locks are typically available for 30, 45, or 60 days, and sometimes longer.

Once locked, the loan's interest rate won't change ? no matter what's happening with the economy ? barring any changes to your application details. You're protected from higher rates, but you won't get a lower rate, either, unless you have the option for a one-time "float down."

Rate lock fees will vary based on the length of your rate lock period and interest rate chosen. We will refund the rate lock fee if your application is denied. If you withdraw your loan application or it is cancelled, the upfront extended rate lock fee may not be refunded unless the application is for a VA loan.

But what if you lock a mortgage and then rates fall? Unfortunately, you can't just unlock your rate to avoid paying higher interest. Your best option is to ask your lender about a rate ?float down,? although this will cost you an additional fee. Switching lenders last minute is also an option for refinancers.

A fixed interest rate is an unchanging rate charged on a liability, such as a loan or a mortgage. It might apply during the entire term of the loan or for just part of the term, but it remains the same throughout a set period.

When you lock the interest rate, you're protected from rate increases due to market conditions. If rates go down prior to your loan closing and you want to take advantage of a lower rate, you may be able to pay a fee and relock at the lower interest rate. This is called ?repricing? your loan.

Before you decide to lock in your mortgage rate for six months, ask your lender if it offers a float down option. Since interest rates can fluctuate considerably over half a year, a float down option would allow you to close at a lower rate should rates fall over that time period.