Rate Lock Duration

Lock durations can vary for mortgage financing, but most lenders lock in the interest rate for 60 days from the date the loan application is submitted. As long as the loan is closed within that lock-in period, the lender honors the agreed upon interest rate.

Some consumers are misled by advertising that quotes unrealistically low rates based on 15- or 30-day lock durations. This is called ‘short-pricing.’ The lender basically knows the borrower doesn’t have time to meet their conditions and have all the necessary paperwork in order within that brief time period. As a result, the lender is not obligated to honor the low rate that was listed in their advertising.

For simple refinance transactions, a 45-day lock-in period is more realistic. For purchase transactions, which are typically much more complex, you’re much safer going with a 60-day lock, even though the interest rate might be a little higher than the rate you see quoted on billboards and the Internet.

Borrowers should make sure they have a written rate lock agreement, and allow themselves a reasonable amount of time to close their loan. We prefer to have all our clients locked in as soon as their application is filed, rather than gamble with predicting short-term interest rate movement. Our team of mortgage specialists focus more on assisting clients with long-term goals and management of their mortgage debt to secure a strong financial future.

If you would like a free market analysis of your property,  contact us at (714) 264-3458 for a free, no obligation report.

Happy house-hunting!

Althea
Rose-Marie & Althea
The OC Dream Home Team
http://www.ocdreamhometeam.com

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