- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
Locking-In Interest Rate (Home)?
Posted on 3/15/22 at 9:16 am
Posted on 3/15/22 at 9:16 am
Apologies if this has already been asked -- but my wife and I are currently looking for a home. Not in a big rush, but fully expecting to buy something in the next 6-8 months. The lending company we've talked with said that we can "lock-in" our rate for a $500 that would be good for 90-days. My understanding is that after the 90 days the rate would be reevaluated and reset to current rates and so forth until we purchase our home.
Does it make sense to do this? With rates going up, my thinking is it does make sense if we buy in the latter part of the window, but not so much if we buy on the front end, obviously no way to know for sure where we'll land.
Expanding on this -- is there a particular lending company we should avoid, or one that we should definitely look at? Or is it just a matter of shopping around and finding the bottom rate? My wife purchased the home we live in when we first started dating and I wasn't heavily involved in this process, so it's all new to me.
Does it make sense to do this? With rates going up, my thinking is it does make sense if we buy in the latter part of the window, but not so much if we buy on the front end, obviously no way to know for sure where we'll land.
Expanding on this -- is there a particular lending company we should avoid, or one that we should definitely look at? Or is it just a matter of shopping around and finding the bottom rate? My wife purchased the home we live in when we first started dating and I wasn't heavily involved in this process, so it's all new to me.
This post was edited on 3/15/22 at 9:21 am
5
Posted on 3/15/22 at 9:19 am to TheJunction
What happens if the rates go down?
Posted on 3/15/22 at 9:22 am to StonewallJack
My understanding is the rate that's locked in is the rate. Whether it goes up or down. I'm assuming that it's not a good chance of it going down with the Fed heavily hinting at raising rates?
Posted on 3/15/22 at 9:25 am to TheJunction
Check with a local bank for advice
Posted on 3/15/22 at 10:30 am to StonewallJack
Maybe pay the $500 and see what happens.
If interest rates fall down significantly then just go with another lender and forfeit that $500 or go with them and see if you can forfeit that.
If interest rates fall down significantly then just go with another lender and forfeit that $500 or go with them and see if you can forfeit that.
Posted on 3/15/22 at 11:11 am to TheJunction
I talked to a lender the other day about locking in something for me to use in 6-7months and he tried to add a full point.
I'll take my chances.
I'll take my chances.
Posted on 3/15/22 at 12:12 pm to TheJunction
My advice, don't lock in a rate until you're under contract on a house. If you lock in prior to being under contract, they will charge you fees to extend the lock. Follow the treasury rates closely during the process.
Posted on 3/15/22 at 1:00 pm to TheJunction
quote:
The lending company we've talked with said that we can "lock-in" our rate for a $500 that would be good for 90-days.
how do you lock in a rate with no purchase agreement?
Posted on 3/15/22 at 3:06 pm to monsterballads
My thoughts as well.
Posted on 3/15/22 at 3:12 pm to TheJunction
This is called Lock and Shop- the rate is locked and secure so they can search for a home they love. If rates go down, our one-time float down option provides the perfect solution.
Here are the details:
1. 90 day lock, must have an executed contract within 45 days.
2. 1% refundable deposit is required at time of lock, if not paid within 48 hours, lock will be cancelled.
a. If no property is ever found, the full amount will be refunded.
b. If file is disclosed, but does not close, the borrower will receive back the deposit less any and all fees incurred, including but not limited to appraisal, credit report)
c. If loan closes, full amount will be credited
3. 90th day. This program does not allow for any extensions.
5. The lock is eligible for a one-time float down once clear to close.
Reach out if you want more details username@gmail.com
Here are the details:
1. 90 day lock, must have an executed contract within 45 days.
2. 1% refundable deposit is required at time of lock, if not paid within 48 hours, lock will be cancelled.
a. If no property is ever found, the full amount will be refunded.
b. If file is disclosed, but does not close, the borrower will receive back the deposit less any and all fees incurred, including but not limited to appraisal, credit report)
c. If loan closes, full amount will be credited
3. 90th day. This program does not allow for any extensions.
5. The lock is eligible for a one-time float down once clear to close.
Reach out if you want more details username@gmail.com
Page 1 of 1
Popular
Back to top
Follow TigerDroppings for LSU Football News