What is a rate lock-in?
A lock-in, or rate lock option, ensures the borrower a commitment to a specified mortgage rate, including not only the interest rate but also its discount/origination points. The borrower must agree with an authorized representative of Hometown Equity Mortgage Company for a specific interest rate in order to choose this option. It is also possible to choose not to lock-in a specific rate, but instead to “float” for a certain number of days. Floating means simply a borrower electing to have interest rates move up and down according to market conditions until a specific rate is elected to be locked-in. All borrowers electing this option must lock-in a rate and its discount points at least five (5) business days prior to a scheduled settlement, or else your settlement will be delayed. At Hometown Equity Mortgage, loan applicants can lock rates over the phone using a credit card. In order to lock-in rates and points, Hometown Equity Mortgage accepts a non-refundable fee of $357.00. This am
