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

View 38,000 properties at http://www.ocdreamhometeam.com  Interested in foreclosure properties? …Take one of our Saturday Foreclosure tours!

Want to buy property but don’t know how?…

Attend our next First-Time Home-Buyers seminar and learn the tricks of the trade!

Call (714) 264-3458 NOW!….  for more information.

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3 CommentsLeave a comment

  1. Well, hello,Terry! Good to see you posting here!

    I feel certain that our readers would love to know more about you, so perhaps you’d like to tell us a little about yourself?

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

    View 38,000 properties at http://www.ocdreamhometeam.com Interested in foreclosure properties? …Take one of our Saturday Foreclosure tours!

    Want to buy property but don’t know how?…

    Attend our next First-Time Home-Buyers seminar and learn the tricks of the trade!

    Call (714) 264-3458 NOW!…. for more information.

  2. california refinance mortgage rate california home loan

    Very interesting post. A little bit confusing, but it still ok Hm.

  3. Garden Lover

    I could say o what a great post and you will do it of as spam, but really it is a great post keep up the good work.


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