What is a mortgage lock-in?
A lock-in ensures you that the same rate will be available when you need it. They make sense when you expect rate to rise during the next 30 to 60 days, which is the usual length of time that lock-ins are available. Some lenders require borrowers to pay a lock-in fee so be sure to check that the rates and points are guaranteed and that your lock-in period is long enough. If the lock-in expires, lenders may offer the loan based on the prevailing interest rate and points. For additional information you can request the publication named: “A Consumer”s Guide to Mortgage Lock-Ins”. This is published by the Federal Reserve Board and Office of Thrift Supervision, Washington, D.C. It can also be obtained from the Federal Reserve Bank of San Francisco, Public Information Department, P.O. Box 7702, San Francisco, CA 94120; or call 415-974-2163 to order. Q: Can I monitor my ARM loan? A: There is a book published by Consumer Loan Advocates that has form letters and worksheets to help people who w
